The strategy is rated in the S&P Alternatives Multi-Asset Multi Strategy peer group, due to its ability to hold significant exposure to commodities.

The new product by Sydney-based boutique manager, Swita Investment Management, offers investors a momentum-style investment that uses over 60 exchange-traded funds (ETFs) across equity, fixed-income, and commodity asset classes. Through momentum and trend measurement, the manager aims to tilt asset allocation to the strongest markets at different points in the economic cycle.

Given the firm’s relatively short track record, our conviction level in the product remains muted in an otherwise interesting strategy.

“While the team is small and less resourced than institutional houses, the strategy’s simplicity and ability to offer diversification to a universe of value-focused equity investments may prove interesting in overall portfolio diversification. The ability to rotate to fixed-income and cash-like holdings in periods of negative equity markets should deliver a lower risk in comparison to long-only global equity indices,” said S&P analyst Michael Armitage.

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