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What changed in August?

This month brings a few strategic shifts, which result in our Stability Core being tightened, momentum in fixed income slowing down, and the engine keeping sector exposure clean and focused on the same areas in the US as the rest of the world. Here is the breakdown win comparative remarks to last month’s allocation. (Find the July report here.)

Stability Core (33% of Portfolio)

• VWCE.XETRA (Global Equity) increased to 60% of the sub-portfolio
• EUNA.XETRA (Global Bonds) trimmed back to 20%
• 8PSG.XETRA (Gold) trimmed back to 7.5%
• SXRS.XETRA (Commodities) unchanged at 10%
• BTIC.XETRA (Bitcoin) unchanged at 2.5%

Equities both in the US and the rest of the world have regained dominance from last month’s more defensive allocation. At the same time, momentum in Gold suggests macro signals tempered risk appetite slightly as the US is continuing President Trump’s tariff implementation. Personally, I am a bit unsure if this equity momentum can sustain such headwinds, but we keep following the data here.

Momentum Chaser (33% of Portfolio)

• 9PSDG.XETRA (Gold) leads weight with 24.7%
• EUN0.XETRA (Min. Volatility Global Equity) unchanged at 32.95%
• VDIV.XETRA (Dev. Markets Dividends) at 22.2%
• VFEA.XETRA (Emerging Markets Equity) trimmed back to 20.2%

Gold pushed to a larger allocation through even more tariff momentum, which is seen alongside equities reaching record highs. Emerging Markets are participating at 20% again, after a steep drop last month.

Sector Navigator (33% of Portfolio)

• US sectors
  • ZPDK.XETRA (Communication Services) unchanged at 16.66%
  • ZPDT.XETRA (Technology) unchanged at 16.66%
  • ZPDI.XETRA (Industrials) unchanged at 16.66%
• Global sectors
  • XDWF.XETRA (Financials) at 16.66%
  • XWTS (Communication Services) at 16.66%
  • XDWT (Technology) at 16.66%

Earnings reports in Tech and Communication Services have aligned both sectors as leaders in the US and the rest of the world, while US Industrials remain stronger, whereas Financials emerge on Global scale.

ESG Score

The portfolio ESG score has dropped slightly to 2.50, reflecting more non-ESG constituents within EM equities and resource processing sectors like US Industrials and Technology receiving additional allocation.

What this Means

We see “Defensive Optimism”, which tilted towards equities after strong earnings, while eyeing the global context of trade war tensions and escalating physical warfare in several parts of the world.

Gold has remained the growth engine through this uncertainty, while some equity sectors are trying to maintain their momentum through the headwinds. With short reallocation cycles, I am confident we will be able to rotate out of downward reversals quickly enough if needed.

Full PDF breakdown: Download August Report, Powered by the Shuhari Capital Engine