Rebalancing Through an Overlay Strategy During Periods of Volatility
February 7, 2019

Rebalancing Through an Overlay Strategy During Periods of Volatility

Periods of high volatility create opportunities for investors to add value through portfolio rebalancing, yet many institutional investors face challenges in implementing a portfolio-rebalancing strategy that provides for discipline and responsiveness during volatile markets. A lack of consolidated current portfolio values, onerous formal decision-making and approval processes, and difficulty determining when is the right time to trade often delay identifying and acting on rebalance triggers. Once approval is obtained, coordinating with many managers to buy and sell physical securities, funds, or both can be time consuming and expensive. Responding in a timely and efficient manner to unanticipated market moves under this scenario can be very challenging.


How to address this challenge?


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An abstract image
Jan Mowbray, CFA
Associate Portfolio Manager
An abstract image
Jan Mowbray, CFA
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