What are the different types of changes we make to your Wealthify Plan?

Learn more about the different adjustments we make to your Plan.
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If you’re investing with us, you probably know that we have a team of investment experts that monitor markets and manage your investments on an ongoing basis. By doing this we can make timely and necessary adjustments to your Plan to keep everything on track and maximise your potential returns.

There are three types of changes that our Investment team make to your Plan:

  • Plan weight(s) change
  • Plan fund(s) change
  • Rebalance

Here’s a quick guide to help you understand how each of these changes works and the type of situations each are used for.

 

Plan weight(s) change

In a nutshell: Changing the percentage amount for different types of investments in your Plan

With your Wealthify Plan, you hold a mix of investments, or assets. When you choose an investment style, be that Cautious or Adventurous, your level of risk is worked out by the portion of shares, bonds, property, and other investments that make up your Plan. But the level of risk you’re taking also depends on what’s happening in the markets, and this is what drives our Plan weight changes. As our experts are constantly monitoring the markets, we’ll make changes to your Plan, when needed and considering your risk level to ensure your money is still working as hard as you do.. These changes could be to the regions you’re invested in, the investment types you hold, or both. For instance, if a region is underperforming and on reflection seems likely to or has significantly outperformed, our Investment Team may decide to sell holdings from that particular part of the world. The opposite is also true for why we may choose to increase a region’s allocation in your Plan. Our aim is to add value to your Plan by dynamically managing it rather than having a fixed allocation with no adjustments made for changing market conditions.

 

Plan fund(s) change

In a nutshell: Swapping or changing one of the funds that makes up your Plan

At Wealthify, we use investment funds to build your Plan – think of them as hampers containing many different investments from one or various regions. And our fund selection follows strict criteria to ensure we only include best-in-class funds in both our Original and Ethical Plans. Our Investment team spends countless hours screening funds based on their holdings, checking whether they’re suitable for our Plans, assessing the offering, engaging with fund managers, and reviewing the funds we’re already using. If you want to know more about our fund selection process, we explain everything in this blog: The Wealthify Way to Fund Research. If our experts find better funds because either due to lower costs for the same product or by finding funds that are more aligned with our values for our Ethical Plans, for example, then they will adjust the funds held in your Plan.

 

Rebalance

In a nutshell: Maintenance on your Plan to make sure it matches your chosen risk level

We talk about ‘rebalance’ when we trade (buy some investments and sell others) to make sure the risk balance of your Plan stays in line with the investment style you’ve selected. This is something we do on a regular basis, and it’s simply part of the management work we offer. Now let us explain why we rebalance. Markets have ups and downs and over time, if left unchecked and unchanged, your Plan may begin to look a bit different from what you signed up for. Say, you’re a Confident investor with a medium-risk Plan where there’s a 50/50 split between shares and bonds. It’s all fine until shares start outperforming bonds, and your initial split could move to 80/20 in favour of shares as their value increases relative to bonds. You may not see the issue, but because of shares performing better than bonds, your risk level has increased, and your Plan will be subject to greater fluctuations. So, to correct this drift, we rebalance your Plan every three months - if you want to know more about rebalancing, make sure you check out our blog about it: https://www.wealthify.com/blog/why-we-rebalance-and-how-it-works.

 

For any changes we make to your Plan, we will always let you know via email, and if you have any questions, please feel free to contact us on 0800 802 1800 or via Live Chat.

 

Please remember the value of your investments can go down as well as up, and you could get back less than invested.

 

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