Our Head of Portfolio Construction, Richard Yeh, recently shared with The Business Times how Syfe’s risk-based rebalancing strategy keeps our clients’ portfolio allocation at its most optimal, no matter which way the market swings.

Richard’s byline piece, titled “The value of risk-based rebalancing”, examines how risk-based rebalancing changes portfolio allocations in response to a sustained increase in market risk to mitigate losses and help investors stay invested for the long haul. When investors are assured that their portfolio risk is always in sync with their risk tolerance, they are less likely to panic sell their investments in a downturn, thus paving the way for long-term investment success. 

The following is a brief summary of the article. 

In risk-based rebalancing, a rebalancing is triggered when the risk within a portfolio either exceeds or falls below an investor’s desired risk level. If portfolio risk increases beyond an investor’s risk threshold – and