Rebalancing



The rebalancing fund from Formiga Wealth is a new intelligent fund concept, which is functioning on asset allocation and not on security selection nor on market timing.


It is a scientific fact*, that most of the portfolio return is being made by asset allocation. This allows us to avoid single security exposure and the negative volatility implied with it.


Every month, we are adjusting our strategy to the new parameters and rebalancing the portfolio in a systematical manner.



* please read "Does Asset Allocation Policy Explain 40, 90, or 100 Percent of Performance?" by Roger G. Ibbotson and Paul D. Kaplan.



STRATEGY OF THE FUND



The fund is ideal for investors who would like to profit from a global diversified market exposure without large price swings. Formiga Wealth has developed a software platform which optimizes the performance with a conservative volatility level.

The outcome of this multi-year development is a well-balanced combination of uncorrelated assets, such as equities, bonds, commodities as well as some exposure into quantitative methodologies.

As assets and their correlation are moving, Formiga Wealth is adapting the weights of the portfolio constituents to the new information through a regular rebalancing.

The fund has no specific benchmark and targets a yearly return of 8% after costs coupled with an annualized volatility of less than 10%.



TEASER

We're Formiga Wealth



Our principles



Liquidity



Monthly NAV.

All investments made within the rebalancing fund have a liquidity of maximum one day.



Diversity



The investment universe of Formiga Wealth contains currently fourteen funds in the equity, bond, commodity and quantitative sector. .The correlation between those assets is close to zero. ​



Automation



Formiga Wealth developped a extensive platform to select the best asset allocation to fit the target volatility level of 10%.