Since late 2014 we have had a bias in our risk allocation towards a defensive stance. This has led to large underweights to energy, bulks, and metals (except Lithium producers which we have been overweight). We have held a neutral position for gold in the large cap portfolios and overweight gold in our small and micro-cap funds (as a volatility hedge). Our over weights have been predominately Telco’s, paper/packaging, diversified financials, healthcare, A-REITs, infrastructure and non-AUD industrial earners. The core drivers to our view from late 2014 were rates heading lower and staying lower for longer, both supply and demand drivers suggesting in bulks and energy weakening significantly and a lower AUD with some periods of excess market volatility (hence gold position).