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 Re-optimisation 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.