The objective of the DFS Alternatives Model is to generate positive (absolute) returns through exposure to liquid alternative investment strategies that have a low correlation to equity and bond markets; and to each other. The portfolio aims to outperform the RBA 90-Day Bank Bill Index over rolling three year periods, net of funds management fees.
The bar chart highlights the strong diversification benefits that have been achieved by the Alternatives Model. While the first bar shows the weighted risk contribution of each fund within the Alternatives Model, the second bar shows the extent to which risk reduced (by over 60%) at the aggregate Model portfolio level. DFS uses the Alternatives Model as a meaningful diversifier across all its portfolios to manage capital drawdowns and enhance risk-adjusted returns.
