Re-balance Cycle Reminder All MyPlanIQ’s newsletters are archived here.

Regular AAC (Asset Allocation Composite), SAA and TAA portfolios are always rebalanced on the first trading day of a month. the next re-balance will be on Monday June 1, 2020.

Please note: As of March 1, 2020, we officially phased out our old rebalance calendar for both SAA and TAA. They are now always rebalanced on the first trading day of a month. 

As a reminder to expert users: advanced portfolios are still re-balanced based on their original re-balance schedules and they are not the same as those used in Strategic and Tactical Asset Allocation (SAA and TAA) portfolios of a plan.

Core Satellite Portfolios In The Current Pandemic

We have always advocated using both of Strategic Asset Allocation (SAA)  (core) portfolios and Tactical Asset Allocation (TAA) (satellite) portfolios together (see here for a list of articles). The idea behind a core satellite portfolio is to combine the strengths of both types of portfolios:

  • The steady (buy and hold) nature of an SAA portfolio to complement/remedy losses caused from whip-saw or false negative risk reduction in a TAA portfolio.
  • The avoidance of big loss from a TAA portfolio to hedge  the inherent market loss in an SAA portfolio. 

The following table illustrates the benefits in different phases of a market: 

 Early BullLate BullBearSide Way
Passive Buy and Hold (Strategic Asset Allocation)GoodGoodBadOK
Tactical Asset AllocationMissGoodGoodBad

It’s thus interesting to revisit some of the core satellite portfolios we proposed before and see how they have performed so far in the current pandemic that probably falls into either Bear or Side Way phase. 

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