In constructing portfolios, we use either:

    • Full replication: This entails perfectly replicating the index/benchmark being tracked.
    • Optimisation: This entails holding an optimal blend of securities that minimise both the tracking error and return differentials relative to the index/benchmark being tracked.

Our team of analysts continuously assess and monitor our positions relative to the market and the potential effect on the index as a result of corporate actions, dividends, or index re-balancing.