Portfolio Optimization

Investment Policy Statement

Asset Allocation Template

Required

Select your preferred asset-allocation template from the options below. We recommend using fewer classes which gives the optimization more latitude to assemble the best portfolio. These define what asset classes constraints are applied to.





Model Constraints

Optional

With each Re-optimization, this strategy will Re-optimize to your prescribed target asset allocation subject to these additional constraints which are applied to all the assets unless designated in the legacy positions table.
  • No Position will have an initial position size greater than (percent entry only)

  • Threshold Constraint: No allocation position will have a position size smaller than (percent entry only)

  • Minimum Position: No idea should have a position size smaller than (percent entry only)

Re-Optimization Policy

Optional

This strategy is regularly reoptimized to best harness the dynamic nature of the markets and underlying assets. This strategy is Re-Optimized on an annual basis which is selected to endeavor the best mix of prediction accuracy, portfolio efficiency, and diversification alpha while minimizing the tax consequences of active management.

or

Apply Smart Re-Optimization






Portfolio ThinkTank believes there are many advantages of regularly planned Re-Optimizations. Among them:


  1. Greater portfolio efficiency and redundancy elimination
  2. Greater diversification
  3. Adaptation of security forecasting
  4. Diversification Alpha
  5. Systematic harvesting of behaviorally induced idiosyncratic volatility

that incremental performance can be achieved by rebalancing a portfolio. The benefits of rebalancing are not limited to particular assets classes or strategies. Financial assets are infamous for their tendency to overshoot and overcorrect. When investments held in this model are believed to perform is such fashion, we believe we can achieve additional returns for our investors by capitalizing on such swings through rebalancing.

Please select how frequently you want the portfolio to be Re-Optimized. We recommend 1 year for most taxable strategies and at least 1 month for any strategy.



Rebalancing Policy

Optional

Research Indicates that incremental performance can be achieved by rebalancing a portfolio. The benefits of rebalancing are not limited to particular assets classes or strategies. Financial assets are infamous for their tendency to overshoot and overcorrect. When investments held in this model perform is such fashion, we expect additional returns for investors by capitalizing on such swings through rebalancing.
In between every Re-Optimization, I want to set the strategy to rebalance every

month

or

Apply smart rebalancing




Step 1 : Personalization