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What is rebalancing and when is it triggered for my pillar 3a portfolio?
When you start, you define your personal investment solution. This determines how your money is divided among the various asset classes and markets or regions.
To ensure your investment solutions always stay on course, we check the weighting automatically in the background and rebalance it whenever necessary:
Deposit or transfer: As soon as additional money or a transfer reaches us, we get started on the next weekly trading day, which is normally Tuesday. Even amounts starting from 1 Swiss franc are invested directly.
Adjustment of your investment solution: When you change your investment solution, we implement it directly on the next weekly trading day.
Weekly automatic review: Our system checks every week whether the weighting of your main asset classes (e.g. equities or bonds) is still correct. If it deviates too much from the plan, we automatically rebalance it.
The investment solution «Brave Standard», for example, invests 80% in equity index funds, which in turn are divided into individual markets according to the strategy. Because prices on the stock markets change daily, these shares shift over time all by themselves. If the equity markets perform great, this share grows. As soon as the limit of 85% is reached, a rebalancing is triggered. In this case, equities in the amount of 5% are sold and reallocated to the other asset classes in line with the investment solution. Which index funds are sold and in what amount is calculated automatically. This is how we ensure that your investment solution is always optimally set up for you.
