Rebalance a portfolio
  • 11 Jan 2021
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Rebalance a portfolio

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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

  1. Go to Company
  2. Go to Model
  3. 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

  1. Go to a portfolio
  2. Click on SWAP
  3. 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.
  4. Change the filters
  5. Click on "Apply"
  6. Swap with the new quantity and new security

Setting Drift Tolerance

Drift tolerance is set up for each portfolio individually.

  1. Go to a portfolio.
  2. Click on ACTIONS
  3. Click on EDIT
  4. Change Acceptable Drift level
  5. Click SAVE
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