BSAI’s Portfolio Management Team built a long-term passive fund by combining macroeconomic analysis, regional asset allocation, and ETF selection. The project began with a global macro outlook covering Europe, the United States, and key emerging markets, assessing GDP growth, inflation, unemployment, monetary policy, sovereign credit risk, and market conditions.

Based on this analysis, the team designed a diversified portfolio across equities, fixed income, and commodities. The final allocation assigns 55% to equities, 40% to fixed income, and 5% to commodities. Geographically, the portfolio is split across Europe, emerging markets, the United States, and commodity exposure.

The fund’s equity allocation reflects a disciplined balance between structural growth and valuation risk. The team maintained exposure to U.S. equities through broad-market ETFs, while slightly underweighting the region due to elevated valuations. Greater emphasis was placed on European and emerging market equities, where the team identified stronger relative value and a better margin of safety.

On the fixed income side, the portfolio focuses on stability, income generation, and duration control. The team selected Eurozone government bonds, European corporate bonds, Italian BTPs, U.S. Treasuries, TIPS, and emerging market sovereign debt. A small commodity allocation was added through uranium exposure, reflecting a long-term view on nuclear energy and energy security.