An investment strategy designed to generate asymmetric risk/returns over the long-term
where asset weightings are increasing in a declining market
and decreasing when it rises.
Active / Systematic / Rebalancing (ASR)
Active
Attempts to monetize short-term volatility from deviations of the target allocations by using a disciplined rules-based rebalancing methodology.
Systematic
There are specific rules for
rebalancing the target allocations
and the handling of volatility.
Rebalancing
Ensures that asset weightings
are decreasing in a rising market
and increasing when it declines.
