Managed Portfolios Ranges

Fusion Optima Range

Fusion Optima Portfolios are designed for investors who are seeking long-term investment performance by relying on systematic asset allocation and asset selection which are implemented through a careful selection of low cost liquid exchange traded instruments.

Fusion investment team starts with systematic Strategic Asset Allocation derived from a well-established scientific approach which is shared by all Fusion portfolios. The approach aims to maximise expected long-term return within well-defined behavioural and risk parameters. The Strategic Asset Allocation assumes that markets are at fair value. Then medium-term market forecast can be overlaid to adjust the allocation by incorporating current market trends.

Fusion Portfolio Components for each asset class are carefully selected from a wide range of well-established product providers, targeting outperformance of their respected benchmarks.
Systematic management of the Portfolio Drawdown at the level of Strategic Asset Allocation is a distinctive feature of Fusion Portfolios. At times of market crisis, such an approach helps to mitigate investment losses intrinsic to traditional portfolios.

The costs of the investments within Fusion Optima portfolios are minimised by targeting low portfolio turnover and investing in exchange traded instruments with high level of liquidity and low total expense ratios to significantly reduce future transaction costs.

Fusion Active Range

Fusion Active Portfolios are designed for investors who are seeking better long-term performance by relying on both systematic asset allocation and the expertise of fund managers who actively manage portfolio components to combine market risk premiums with elements of market timing and individual asset selection.

Fusion investment team starts with Systematic Strategic Asset Allocation derived from a well-established scientific approach which is shared by all Fusion portfolios. The approach aims to maximize expected long-term return from well-diversified multi-asset portfolios within well-defined behavioural and risk parameters. The Strategic Asset Allocation assumes that the markets are at fair value. Medium-term market forecasts and short-term tactical tilts are then added to account for current market trends and short-term market or economic opportunities. This active stance on the Strategic Asset Allocation is known as Tactical Asset Allocation.

Tactical Asset Allocation is implemented using, primarily, actively managed funds selected mostly from a range of well-established product providers who aim to consistently out-perform their respective benchmarks.

Fusion investment team can also, from time to time, add a small proportion of niche specialist managers to the Fusion Active portfolios to give investors access to non-traditional asset classes as alternative sources of uncorrelated investment returns. Manager selection and resulting portfolios are constantly monitored, re-assessed and rebalanced on quarterly basis.

The prominence of the Systematic management of Portfolio Drawdown at the level of Tactical Asset Allocation, funds selection and protection overlay is the distinctive feature of Fusion Active portfolios.

Fusion ProActive Range

Fusion ProActive Planet portfolios meet the needs of investors who feel a responsibility to consider the broader consequence of their investment decisions and would like their investments to ‘do some good’ in addition to providing a financial return. Portfolio returns rely on systematic asset allocation and responsible investment principles based on the expertise of fund managers who actively manage portfolio components to combine ESG issues and market risk premiums.

Fusion ProActive Planet portfolios are based on systematic Strategic Asset Allocation, shared by the Fusion Active and Fusion Optima portfolio ranges, derived from a well-established scientiﬁc approach aiming to maximise expected long-term return within well-deﬁned behavioural and risk parameters. The Strategic Asset Allocation assumes that markets are at fair value. Then medium-term market forecasts are overlaid to adjust the allocation by incorporating current market trends.

Fusion Portfolio components for each asset class are carefully selected from a wide range of well-established product providers, targeting outperformance of their respected benchmarks. In the Fusion ESG offering, the selected portfolio components are screened to ensure that they have high ESG ratings, provided by MSCI. MSCI ESG fund ratings aim to measure the resilience of funds to financially material environmental, societal and governance (ESG) risks. Where the fund is not rated by MSCI, additional third-party ratings providers are used.

Systematic management of the Portfolio Drawdown at the level of Strategic Asset Allocation is a distinctive feature of all Fusion portfolios. At times of market crisis, such approach helps to mitigate investment losses intrinsic to traditional portfolios.

Fusion Champions Range

Fusion Champions portfolios are constructed using an expert combination of multi-asset funds. The Champions range is designed for investors who seek exposure to the ‘best in class’ multi-asset funds, yet appreciate the benefits that diversification brings, particularly in times of a market stress.

The rigorous Champions fund selection process has been specifically designed by Fusion to ensure only the best performing funds which represent the best value for investors emerge.

Our analysis begins with the entire fund multi-asset fund universe covered by the FE Analytics database. Fusion’s screening process consist of a number of factors including longevity, charges and predefined levels of risk. The eligible funds are then ranked with regards to the quality of their returns on both a 3-year and 5-year investment horizon to select ten funds. Out of these, the five minimally correlated funds are selected to achieve maximum diversification.

The result is a portfolio, diversified across providers, which ensures that investors are exposed to the best performing multi-asset funds, with expertise monitoring and oversight provided by Fusion.

Fusion Passive Range

Fusion Passive portfolios start with the principles of Passive Investments:

transparency – it’s always clear which assets are in an index fund;
risk compliance – the strategic asset allocation is not distorted by active stock picking;
low-fees – as “No one knows what the market is going to do tomorrow”, why should the client have to pay more?

The Fusion Passive range is built on the strategic asset allocation consistently corresponding to the predefined Dynamic Planner risk profiler. Asset classes are represented by expertly selected low-cost tracker funds from a diversified set of first tier providers.

The Passive range is aimed at investors who trust in the passive investment philosophy and value the additional transparency of their portfolio alignment with that of a widely trusted and recognised industry risk profiling tool.