Constantly adapting to changing market dynamics is a healthy way to maintain consistent long-term performance. The ‘Berrywise Smart Rebalance’ manages an investor and market risk in an optimal way while also ensuring minimal tax impact. As market dynamics change so do funds’ performance. Specific market regimes have their own set of performance drivers. Our Regime modelling engines identify upcoming regime changes, allowing us to move our investors into the right funds for the given regime for optimal and consistent returns.
Rebalancing takes in to account both an investors' propensity for short-term return but also the horizon-risk of their investment journey. For an investor that plans to stay invested in the market for a long period the impact of short-term market changes is minimal. In this case we focus our rebalancing on the medium-term.
On the other hand, for investors that plan to stay invested for a short period we use a pro-active rebalance allowing them to take advantage of short-term opportunities while ensuring that their risk threshold isn’t breached.
Outliers and external shocks like a global pandemic or significant geo-political scenarios like war or economic sanctions can cause significant shifts market dynamics and can affect investors in Bothe the short and long term. In these scenarios, we rebalance with a focus to ensure that overall macro risk is contained to enable investors to ride out the storm and come out the other side with better risk-managed returns than a traditional passive investment style.
