How is the Factors Portfolio managed as a discretionary portfolio?
As a discretionary portfolio, auto-rebalancing is turned on by default for the Factors Portfolio. This means that clients can rely on Endowus’ expertise to monitor, automatically rebalance and optimise the fund allocation so that your portfolio delivers the highest risk-adjusted returns for your intended goal and risk. If we find better-performing and/or lower-cost funds that can value-add to the Factors Portfolio, we will automatically change the funds in the portfolio. Please be assured that you will be transparently informed of any changes that happen to the funds in the Factors Portfolio.
The discretionary nature of the Factors Portfolio allows us to manage the portfolio more efficiently for you. We do not make tactical changes to the portfolio’s asset allocation according to economic or market conditions. We adopt a strategic and long-term asset allocation strategy, whereby we encourage clients to stay invested in a risk-appropriate asset allocation until they have achieved their investment objective.
Please note that if you opt out the auto-rebalancing feature in Preferences, the opt-out will not apply to the Factors Portfolio.