When a particular asset reaps significant gains relative to other assets in the portfolio, its market value weight increases above the target allocation. Without rebalancing, the portfolio is increasingly concentrated in the outperforming asset class hence raising risks. Our algorithm checks customers’ portfolios daily, and performs rebalancing when allocations deviate from targets by more than our "optimised" bands. This can happen weekly, monthly or quarterly, depending on the markets' volatility and performance.
StashAway’s ERAA® investment strategy. Historically, re-optimisation happens about once a year.
General Investing powered by BlackRock®
You can expect re-optimisation to occur around 4 to 6 times a year.