The portfolio management policy sets aggregate parameters, the review cycle, deviation control and rebalancing rules. It does not describe the analysis of individual issuers — there is a separate policy for that — but it defines what the portfolio looks like as a whole.
Target parameters
- Strategic return target: key rate + 4–7% p.a. Tactical target for 2026 — 20% p.a. net of fees and costs.
- Target duration: 2–3 years.
- Rating structure: BBB and A — up to 60% combined, AA and AAA — up to 20%, high-yield segment — up to 15%. The structure is a ceiling and is reviewed.
- Sector limit — 25%, equities — 10%. Cash — unlimited.
- Derivatives — hedging only, up to 100% of a position. Speculation in equities, commodities and FX is prohibited.
What is monitored
Actual return and duration, structure by rating, sector, currency and coupon type, cash and equity share, positions in red status, overdue issuer updates, hard limit breaches and the relevance of active limit orders.
Review rhythm
Daily: all active limit orders on brokerage accounts are checked. Without this check the daily cycle is considered incomplete.
Weekly: the market review is closed, positions, targets and limit orders are reviewed, the portfolio is checked against target parameters and for deviations in cash, ratings, sectors and duration.
Monthly: return targets, target rating structure and cash share are reviewed; charts of portfolio structure and dynamics are mandatory. Parameters are reviewed at least quarterly.
Rebalancing
Formal rebalancing takes place weekly. A separate trigger is actual duration below 1.5 or above 3 years. At portfolio level we analyse actual return, premium to fair yield and the repricing potential of each position. Rebalancing is done only towards improving the portfolio's aggregate risk / reward.
When cash is short
When there is no free cash for a new idea, the bond with the lowest repricing potential is sold first. This keeps the portfolio constantly shifting towards bonds with the highest expected return per unit of risk.