Monthly Portfolio Changes

In November, we made several changes to the portfolios. In fixed income, we reduced our exposure to Chinese government bonds and invested the proceeds into hard currency emerging market bonds (issued in US dollars). We also took partial profit on our overweight allocation to long-date European government bonds and increased our exposure to high yield debt via “Fallen Angels”. In equities, we took partial profit on our smart beta allocation to ‘quality’ and rotated into US industrial stocks which stand to benefit from the ongoing cyclical rotation we have seen across markets. We also took profit on our allocation to Chinese mainland equities and invested the proceeds into Russia which is a true EM value play via its high exposure to energy and financials. Finally, within our commodity carve-out, we took profit on our position in silver. We did not make any changes to our investments in property this month.