How does Zwitserleven deal with rebalancing in life cycle investing?
Zwitserleven uses bandwidths. We make adjustments as soon as a bandwidth is hit. This bandwidth is 15% relative. This means rebalancing occurs as soon as a fund, comprising 50% of a life cycle, undergoes a weight increase or decrease of 7.5%. In the case of HorizonBeleggen and ProfielBeleggen rebalancing may apply. This will be once a month.
A rebalancing is applied only if a fund deviates more than 15% from the strategic allocation at that one point during the month.
|Fund 1||Strategic 10%||Rebalance if below 8.5% and higher than 11.5%|
|Fund 2||Strategic 40%||Rebalance if below 34% and higher than 46%|
|Fund 3||Strategic 50%||Rebalance if lower than 42.5% and higher than 57.5%|
Rebalancing always done on the entire capital. This means that you may exceed the bandwidth in between two rebalancing moments and continue to do so until the next rebalancing moment. If you have any questions, please do not hesitate to contact your adviser or Internal Account Manager.