Reallocation

A portfolio switch entails a reallocation of the invested capital from one predefined portfolio target allocation to another. Using the Investment API, this can be done in two steps:

  1. Switch the allocation in the portfolio configuration of the account
  2. Triggering a rebalancing of this specific account to reach its new target allocation.

Your user's investments are not affected by step 1 alone; this step only defines the new target state. The actual reallocation takes place after a rebalancing of the user's account is triggered.

Once the rebalancing is triggered, we ensure that only the net differences within a user's account are sold and rebalanced. This means that users do not suffer any adverse tax implications resulting from liquidating the entire portfolio and purchasing a new allocation. It also eliminates the need to close the user's account.