REBALANCING UPDATE: November 2019

Since the last rebalancing, during the period between 17^th of July and 14^th of October, all Fusion DFM portfolios outperformed their respective benchmarks with the highest outperformance of around 0.60% recorded for more risky portfolios. The outperformance was driven by both systematic asset allocations and specific funds selection within the portfolios. Less risky portfolios performed better this quarter with Defensive portfolio gaining +0.59%. Strong pound performance one week prior to the rebalance, caused by the long-anticipated Brexit deal progress, hindered the performance of unhedged international risk assets, with the largest impact in Generation and Growth programs.  

The model for Global Asset Allocation remains the same. Allocation between asset classes changed slightly, with some of the capital from Investment Grade Bonds, Developed Equities and Emerging Markets re-distributed towards Commodities. The proportion of Government Bonds within portfolios remains essentially the same, with partial re-allocation of capital from long-term bonds to bonds with shorter maturities. As all these changes can be seen as risk reduction, the excess capital allocation into Commodities has been invested in Gold Exchange Traded Certificate, rather than in broader commodities index products.