The Amplify SCI Balanced Fund has evolved significantly over the past five years, reflecting our team’s commitment to disciplined asset allocation and thoughtful portfolio construction.
A Broader, Smarter Offshore Strategy
With increased offshore capacity, the fund expanded its exposure through the Laurium Global Equity Prescient Fund (Global UT), which focuses on cost-effective ETF investments. This approach aimed to outperform the MSCI ACWI benchmark by actively managing the blend of passive instruments, using asset allocation and minimum variance analysis.
At times, this meant resisting purely quantitative signals—for instance, avoiding heavier European exposure despite model suggestions, due to a weaker economic outlook. Believing US equity valuations were high, the fund instead tilted towards value and small-cap indices, such as the Russell Value, capturing exposure to the US GDP growth vector at more attractive valuations. While this value bias performed well in 2022, it underperformed during the 2023–2024 rally driven by the “Magnificent Seven” tech stocks.
Introducing the Alpha Layer
Over the past three years, the offshore strategy has evolved further by adding an “alpha overlay.” The Laurium Global Active Equity Fund (LGAEF) brings in 25–30 high-conviction global equity ideas, unconstrained by benchmark or geography. This active layer is built through rigorous research: screening global opportunities, in-depth business analysis, and careful valuation, considering factors like return on invested capital, quality of earnings, and ESG assessments.
The active component aims to complement the smart beta core, which manages factor exposure. As the alpha allocation grew from an initial 2% to around 25%, adjustments were made in early 2025 to the passive Global UT portion—reducing country and value tilts to bring tracking error back in line. These refinements help maintain balance between active conviction and systematic exposure.
Learning from Past Decisions
Reflecting on performance through Brinson analysis, the fund’s team noted that higher offshore equity exposure over recent years could have benefited returns. Within the offshore bucket, the value tilt, while strategic, also detracted during certain market phases. However, offshore bond selection, including African Eurobonds, added value, and strong domestic asset allocation decisions—like an overweight position in South African government bonds—contributed positively.
Crucially, the fund’s process is built to evaluate these decisions against a clear strategic asset allocation framework. This ensures that allocation and selection decisions are measured thoughtfully, rather than purely against peer rankings.
Consistent Results and Client Focus
Since its inception, the Amplify SCI Balanced Fund ranks in the top decile of its category (source: Morningstar). The blend of active insights, disciplined strategic allocation, and adaptable ETF-based exposure has supported robust performance—even through shifting market cycles.
At Amplify, our aim remains clear: to blend cost-efficient passive exposure with targeted active insights, so clients benefit from a portfolio built to weather global volatility and capture long-term opportunities. As markets evolve, so too will our approach—always guided by disciplined analysis, informed conviction, and a commitment to delivering consistent value.
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