Rebalancing is a very important feature to save time. To set up the rebalancing mechanism you have to carefully follow these steps.
Setup a portfolio type
A portfolio can be set in a Strategy mode or a Model rule-based. This can be changed individually on each portfolio page.
What is the difference?
The strategy will follow investment objectives for example 10% bonds 30% equity. The artificial intelligence will then find an optimal solution to reach these objectives. Rebalancing is looking at asset classes, currencies, countries, industries, and risk.
The model will follow a precise list of securities. The artificial intelligence will then find % of each security you should buy or sell. Obviously, it will also prevent you to build transactions on non-eligible securities - securities that are not on the compliance list specified.
Link a portfolio to a compliance list
Your portfolio is now ready for rebalancing. Following the previous steps is mandatory otherwise you will not find a relevant rebalancing.
You will find three ways to rebalance a portfolio :
Portfolio Type Model
- Go to Company
- Go to Model
- Go to Rebalance or Trade Blotter
Go to Portfolio
Click on the Rebalance button you will find below the Overview
Click on rebalance and you can then create a detailed rebalance file and store "Exclusion visa" if a security is not eligible! This explanation will automatically be stored in the Contact Report.
Portfolio Type Strategy
- Go to a portfolio
- Click on SWAP
- Spot the most adequate alternative - as you see here InvestGlass Artificial intelligence will extract securities similarity but also spot portfolio impact. If you wish to override the automatic filter, you can click on the show filter.
- Change the filters
- Click on "Apply"
- Swap with the new quantity and new security
Setting Drift Tolerance
Drift tolerance is set up for each portfolio individually.
- Go to a portfolio.
- Click on ACTIONS
- Click on EDIT
- Change Acceptable Drift level
- Click SAVE