Ben Givon Investment Team
Rebalancing and monitoring
Finally, we constantly monitor our clients' portfolios and periodically rebalance each back to its target mix in an effort to optimize returns for their intended level of risk.
After taking tax implications and trading costs into consideration, we rebalance when dividends from ETFs accrue, a deposit or a withdrawal has been made, or if movements in the portfolio's allocations justify a change.
The first step in our methodology is to identify a broad set of diversified asset classes to serve as the building blocks for our portfolios.
We determine the optimal mix of our chosen asset classes by solving the "Efficient Frontier" using Mean-Variance Optimization (MVO), the foundation of Modern Portfolio Theory. The Efficient Frontier represents the portfolios that generate the maximum return for every level of risk.