DAA change: reduce alternatives, increase fixed income
With government bond yields continuing to rise, we have again reduced our exposure to trend following alternative strategies and increased the weight of government bonds in our portfolios. We are now slightly overweight fixed interest, and remain modestly overweight alternatives, but if trends continue we will continue to return the portfolios to a more neutral stance.
Note that we’ve also changed our mix of Australian bond investments slightly, increasing the proportion of the index fund relative to the active manager. This lowers the overall portfolio fee slightly and gives us a little more exposure to corporate bonds in most profiles. The rationale for the move is identical to that from last month.
Clients who are logged in can access the updated model portfolio files and standard text from our downloads page, and will see the full details of the portfolio changes and suggestions for implementation below.
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