South African (ZAR) Solution Rebalance

SEPTEMBER 2021

As is our routine, we carefully monitor the many components that makeup our portfolios. You may be aware that we ran several rebalances to portfolios last year, this info is available on request. In this instance, the past 12 months+ has served up some very strong performance, resulting in a swelling of your riskier assets (equity, property) within each of your portfolios. Quite simply, we are reducing this swelling (drift) back down to its target weight. This is both prudent and necessary in the ongoing management of risk. Please see below for more detail.

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Portfolio Reoptimisation & Rebalance

This piece is compiled by Brendan de Jongh, SA Head of Investments at PortfolioMetrix

We will be rebalancing the multi-asset model portfolios on platform back to target weights to address drift that has come about from strong performance in risky assets (equity and property). Because of this drift, portfolios have moved up the risk curve and we think it would be prudent to address this. Our usual optimisation process was followed which resulted in insignificant changes to asset allocations and so we decided to hold steady on the target weights we settled on in our last rebalance (November 2020). For more detail on the rationale for that rebalance please see the communication sent here.

All platforms are scheduled to be rebalanced from the 7th to the 17th of September 2021.

Please note that while the rebalance is being processed:         

  • Withdrawals will not be processed; and

  • Change mandates can be instructed in WealthExplorer™ but, depending on the timing of the instruction, may only be processed by the platform on completion of the rebalance

  • The freeze period is usually 3 to 5 business days starting on the trade date but ultimately depends on the platform.

Portfolio RebalanceFleuriot & AssociatesFleuriot & AssociatesBuilt Not Bought, Wealth Management, Investing, South African Solution, StrategyComment