The basis of our investment strategy is to build portfolios with particular asset allocations that are optimal for 4 different economic cycles. When our investment team identifies and signals a change in the economic cycle, our technology will automatically re-optimise all portfolios' asset allocations.
To give you more context, when the economy or markets shift in a significant way, our investment framework ERAA® will recommend changes to the target asset allocations for all the portfolios we manage to keep our clients’ risk profile constant while maximising long-term returns such that it is suitable for that particular environment.
This process is called Reoptimisation and when this happens, we may introduce new ETFs or change the weightage of existing ETFs in your asset allocation. While our system checks for rebalancing daily, our re-optimisation happens only from time to time and can be triggered by one of three events; a change in economic conditions, a change in the valuation of one or more asset classes, or by a triggering of ERAA®’s risk shield.
Were you looking for rebalancing instead? Click here for Rebalancing.