Minerva Investment Management Society

Fund Update · Diversified Passive Selection Fund

Diversified Passive Selection Fund - May 2023

· Portfolio Management · Diversified Passive Selection Fund

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Summary

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.

Our final report for this semester presents a conservative asset allocation, with an increased exposure to fixed income and a more cautious view on equity and commodities. Among the new entries, the team chose an ETF on European Banks AT1 Contingent Convertibles, which are deemed to bring a positive risk-return profile in light of the recent banking turmoil, and another one on US ultra-long duration bonds to hedge against the risk of a severe economic downturn that in their opinion will trigger a rapid cut in interest rates. Finally, the team has a positive view on APAC ex-China, particularly on Japan.

Authors

  • Federico SchizziPortfolio Manager
  • Meric CavusPortfolio Analyst
  • Andrei TudoroiuPortfolio Analyst
  • Michele ZaniratoPortfolio Analyst
  • Davide GiulianoHead of Asset Management
  • Gianluca CaffiHead of Portfolio Management

Details

Published
31 May 2023
Division
Portfolio Management
Fund
Diversified Passive Selection Fund
Type
Fund Update
Pages
15
Authors
6

Cite this report

Minerva Investment Management Society (2023). Diversified Passive Selection Fund - May 2023. Portfolio Management. https://minervaims.org/archive/diversified-passive-selection-fund-may-2023

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