Fund Switching & Rebalancing
A fund switch transfers all or part of the amounts invested from one fund to another within the same compartment. It lets the policyholder adjust the allocation of their savings according to market conditions, investment objectives, or risk profile — to seek better returns, reduce risk, or respond to changes in personal circumstances.
How a switch is structured
A switch is expressed as sell legs and buy legs on a self-invested compartment:
- Sell and buy legs must balance against each other.
- A full-position sell must be expressed as a percentage, not an amount.
- The same ISIN cannot appear more than once within a switch.
- Each sell leg must reference a known current position with a known share valuation.
- A switch is rejected if it would sell more than is available, or if the position might become insufficient due to market movement between validation and execution.
The direct self-invested switch request contains only the switch legs. The server creates the switch timestamp and returns it as createdAt.
Target allocation
Alongside individual switches, a compartment can define a target allocation — the desired split of a self-invested compartment across instruments — used to guide future rebalancing. Target allocation percentages must sum to 10000 basis points, with no duplicate ISIN.
Self-Invested only
Both switches and target allocation apply to self-invested compartments. A discretionary compartment's allocation is managed instead through its mandate.