An update on our latest SAA trade
Every year, Omnis reviews the group Strategic Asset Allocation (SAA) and factors in J. P. Morgan's Long-Term Capital Market Assumptions (LTCMAs) together with additional constraints and investment considerations.
Earlier this year we shared the changes we will be making to the SAA in the Omnis Managed Portfolio Service (OMPS) and Omnis Agility. This week we have implemented the final trades to bring the portfolios in line with the new SAA.
As a reminder, the new SAA and the rationale behind it can be found here:
The latest portfolios as a result of this week's trades are available now
New Tactical Positions
As part of this week's trade, we have also added new tactical positions in both OMPS and Omnis Agility. We have begun favouring US Smaller Companies due to their valuations and resiliency if the US economy remains robust. We have also moved to a positive stance on Chinese equities, where we see policymakers becoming more forceful with economic support and the Chinese equity market having low direct exposure to the US in light of the recent tariffs news.
- In OMPS, we have implemented this view by increasing allocation to the Omnis US Smaller Companies Fund and to the Omnis Emerging Market Equity Leaders Fund.
- In Omnis Agility, because of the additional granularity that ETFs provide us with, we have added two new ETFs in the portfolios: the SPDR Russell 2000 ETF and the MSCI China A Shares ETF.
As a reminder of the benefits that ETFs bring to Omnis Agility, here is a short client-approved video that explains this.
Further details of these trades can be found in these documents:
