06 Mag MIMS – DIVERSIFIED PASSIVE SELECTION FUND (REPORT MAY 2022)
The fund is composed of a range of Exchange Traded Funds selected by the Portfolio and Quantitative Research (Risk) teams. These ETFs aim to replicate as closely as possible the performance of a basket of securities with specific common properties, thus being effective instruments for investors who wish to express a certain view on industry sectors or economic trends whilst capturing as little idiosyncratic risk as possible.
The fund currently presents a very unusual strategic asset allocation being invested in commodities for 25%, in bonds for only 10%, and in global equities for 65% of the portfolio to navigate the present turbulent times. Keeping constant the strategy implemented in the December 2021 report, we hedged the portfolio using precious metals, we shortened the duration of the fixed income component of the portfolio and we further shifted towards defensive sectors within the equity component.Download PDF