Dolfin has its model performance for the year ending 31 December 2019, with strong performance across the board.
Seven of the nine portfolios outperformed their reference indices. The USD and EUR Balances portfolios in particular achieved a return gross of fees of 15% and 13.8%.
The portfolios are constructed on an absolute returns basis, allowing holdings to be more diversified across asset classes and geographies, and less constrained versus relative return investors.
Despite equity volatility being high in 2019, the portfolios avoided this owing to the team’s freedom to reduce equity exposure earlier in the year. The team was overweight fixed income in the second half of the year and built up some of the satellite holdings in equities that sit within its thematic ideas.
Reference indices are based on a target spread over inflation that differs depending on the respective risk profile: conservative, balanced or growth.
The macro-valuation-sentiment-technical (MVST) framework provides the structure around which the portfolios are constructed, enabling Dolfin to avoid holding equities when they appear overvalued. By employing multiple time horizons within models, the team has also navigated the volatile markets.
Later this month, Dolfin will release its Q1 2020 investment outlook with full details of the performance of all its portfolios, including its views on what to expect from markets in the months ahead.
Dolfin head of investment management, Simon Black, said: “We are pleased to have delivered strong outperformance for clients across the vast majority of our portfolios. Our thematic ideas all contributed to the positive performance, and our ability to adjust duration exposure within the portfolio, through the use of interest rate futures, sees us combining an institutional investment approach with private client service. We see this combination is a true differentiator.”