What is rebalancing?
Rebalancing adjusts the asset composition of your portfolio and involves buying and selling assets to maintain the desired asset allocation according to the portfolio’s investment strategy.
The following Managed and Cash Management portfolios are managed on a fully discretionary basis and the rebalancing details are as follows:
Syfe rebalances your 100% REITs portfolio in line with the iEdge S-REIT Leaders index twice a year in March and September.
The REITs component of the REITs with Risk Management portfolio follows the rebalancing schedule of the iEdge S-REIT Leaders Index as well.
Additionally, the REITs with Risk Management portfolio will be rebalanced as needed based on market circumstances to minimize fluctuations in your portfolio value. This delivers better risk-adjusted returns and greater peace of mind for customers.
When volatility increases, the REITs with Risk Management portfolio is adjusted to take on less risk by holding a lower amount of REITs and a higher amount of bonds. When volatility subsides, we will increase again increase your REITs allocation to capture the market recovery.
Syfe rebalances your Core portfolios twice a year in April and October in accordance with our asset allocation risk budgeting strategy and optimized exposure to smart beta factors that maximizes the long-term risk-adjusted returns for the respective Core portfolios.
Select Theme portfolios
Syfe rebalances your Select Theme portfolios twice a year to achieve the most efficient portfolio allocation.
Select Custom portfolios
Syfe does not rebalance your Select Custom portfolios, even when the allocation between constituents has deviated from the initial targets due to market movements. You may edit the composition and allocation of your Custom portfolios at any time. Learn more about non-discretionary portfolios.
Cash+ Flexi portfolio
While there is no regular rebalancing of the Cash+ Flexi portfolio, it is periodically reviewed to achieve an optimal allocation.
There are two rebalancing methods for Income+ portfolios:
Portfolio optimisation recommendations based on forward looking views
Income+ portfolios come with a special optimisation feature that allow clients to adjust their portfolio allocations with ongoing recommendations from Syfe. These recommendations will be informed by PIMCO’s forward looking views on the market based on credit spreads, yields, and economics forums to identify the most attractive investments. It will enable the portfolios to adapt to the changing market conditions and provide the best returns and income.
Syfe will make these recommendations to clients on a semi-annual basis. Clients will have the choice to either accept the recommendation or not. Clients who accept the recommendations will have their portfolio allocations adjusted to the latest target asset allocation guidance by Syfe. Clients who do not accept the recommendations will continue with their current allocations. We encourage clients to follow the recommendations to adapt their portfolios to changing market conditions and keep their portfolio returns optimised.
Automatic rebalancing to address price drifts
Syfe automatically rebalances the portfolios on a periodic basis if the portfolios are out of alignment with their respective target asset allocation due to price drifts. This helps clients to stay aligned to the target asset allocation of their portfolios. Investing in the Income+ portfolios automatically opts you into this feature.
To learn more about the different rebalancing methods, refer to Income+ Invest Strategy