Adaptive Rebalancing
Beyond scheduled rebalancing, OLTA indices may be adjusted when specific criteria are met.
OLTA indices apply an adaptive rebalancing framework that complements the standard schedule.
Rule-based criteria define structural events (e.g., breaches, eligibility failures, governance votes), while quantitative drivers provide market- and risk-sensitive inputs that help determine the extent and calibration of scheduled or unscheduled rebalancing.
Quantitative drivers are not limited to extraordinary cases. They also help guide scheduled rebalancing by informing trade size, allocation shifts, and risk adjustments. Continue Reading:
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