Correlation Assessment reviewing the allocations

How asset classes move relative to each other can change over time. This is why we review the overall allocation for each of our portfolios. This ensures all the asset classes are mixed properly, making sure the portfolio remains on the Efficient Frontier. As new products become available to access different or changing market segments, this assessment also allows us to determine if the asset classes themselves should be changed or adjusted.

Fund Replacement Reviews keeping high quality funds

The funds chosen through our Proprietary Fund Selection Process are reviewed quarterly to ensure that they are still performing at the highest level compared to their peers6. If a fund is deemed to be under-performing its peers, we will repeat our fund selection process to choose a new fund that does meet our high standards. This also allows us to regularly review newer funds that may not have previously met our ten year minimum track record requirement.

Conditional Rebalancing staying on the efficient frontier

Each of our fund holdings will perform differently. Any time a particular holding deviates from its target allocation percentage, we will rebalance the portfolio back to the original percentages - selling high and buying low. For example, if a fund is supposed to have a 10% allocation, and it increases in value to make up 12% of the overall portfolio, we will rebalance the portfolio. Every account is looked at individually on a weekly basis to check for any rebalancing opportunities. It allows us to potentially take advantage of overpriced and underpriced asset classes.