Portfolio Management

The Portfolio capability reasons about a set of holdings as a single system rather than a list of line items. Its concern is not any one position but how the positions interact — their concentration, their correlation, and their drift away from an intended allocation.

What it models#

Rebalancing is proposed, never performed#

When allocation drifts past its tolerance, the capability produces a rebalancing proposal: the specific set of trades that would bring the portfolio back to target, with the tax and cost consequences of each estimated up front. The proposal is a document to be reviewed and approved. Turning it into orders is a separate, explicitly authorised act handled by the Trading capabilities.

target      60 / 30 / 10   equities / fixed income / cash
current     68 / 26 /  6   as-of 2026-09-05 close
drift       +8 equities    beyond the 5-point tolerance band
proposed    trim equities by 8, add 4 fixed income, hold 4 cash
            · realises a gain in one lot  →  tax impact estimated, shown
            · stays inside single-name concentration limit
authority   proposal only  —  no order is placed by this capability
review      requires human approval before routing to execution

Continuous risk monitoring#

Between rebalancing events the capability watches the portfolio against its stated constraints and raises an alert when one is breached — a position growing past a concentration limit, a correlation cluster tightening, a factor exposure exceeding its mandate. Monitoring is autonomous precisely because it only observes and reports; it triggers analysis and proposals, never trades.