Prometheus Asset Allocation

Portfolio Update

The Prometheus Asset Allocation program offers a stable, macro-focused approach to asset management. Asset Allocation aims to outperform a traditional stock and bond portfolio by leveraging our proprietary systematic macro process to rotate between 3 ETFs monthly.

This strategy has performed well through the most recent market volatility, avoiding the volatility of the 60/40 portfolio:

We visualize the simulated performance of the systems that drive this strategy below:

Our observations are as follows:

• Our Asset Allocation program saw gains of 1.45% over the last month on the back of commodity exposures, side-stepping the significant drawdown in stocks and outperforming bonds.

• The economy remains expanding, and inflationary pressures are likely to persist, with the Fed unlikely to ease monetary policy.

• Macro market trends have moved to favor an inflationary backdrop with stocks trending lower, bonds mixed, and commodities resilient.

• Across macro markets, we see compressed expected returns relative to cash, making active macro investing an integral component of navigating today’s backdrop.

Our outlook remains one of an expanding economy with elevated uncertainty. Consistent with our systematic outlook, the Prometheus Asset Allocation Strategy is currently positioned as follows