We believe in high frequency rebalancing

  • We design tactical asset allocation models, which are rebalanced on a weekly basis.
  • We do not believe there is a magic combination of assets, which can remain more or less unchanged through all the different stages of the investment cycle.
  • Static asset mixes cannot be relied on to deliver a target return with an acceptable level of volatility.
  • This hasn’t stopped academics, consultants and investment managers from trying to find the magical combination.
  • We merely note how much the consensus answer to this question has changed over the last ten and twenty years.
  • We suspect it will change as much in the future.