Main issue with the current exit criteria
1. Staggered exits do not create closure - “I just completed my audit last week, why has the portfolio become unhealthy again”
2, Not easy to explain partial exits - “Why can’t you take a stance on neutral funds as an advisor? Should I hold it or not.”
What are the existing exit conditions?
1. Staggered exit for neutral funds
2. Small holding exits (<2% of total portfolio)
3. High-concentration penalisation
4. No exits for recommended funds or top-ranked funds from recommended categories
What are the new exit conditions?
1. Exits only from non-recommended funds
2. Small holding exits (<2% of total portfolio)
3. No exits for recommended funds or top-ranked funds from recommended categories
What’s coming up next?
1. 1:1 fund replacement when reinvesting
2. Primarily focusing on portfolio clutter
3. Notifications for customer to do their portfolio health check
FAQs
Q: Will the external portfolio have similar exit rules?
Yes, the external portfolio also will respect the same exit rules.
Q: Can customers continue to modify exit recommendations?
Yes, this will continue to remain available.
Q: Are we informing customers about this change?
No, as this is internal and nuanced. Once we make changes to our reinvestment recommendation we will send out a combined communication.
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article