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Knowledge base

Understanding the Investment Strategy Page

Learn what the Luum Strategy page analyses, how rebalancing suggestions are generated, and what the AI output does and does not mean.

The Strategy page is a Wealth-tier feature that gives you an AI-powered view of how your portfolio is positioned, where the risks are, and what adjustments could bring your allocation closer to your stated goals. This article explains how each section works and what the output means.

Not investment advice. The Strategy page is an analytical and educational tool. Nothing it produces constitutes personalised investment advice, a suitability assessment, or a trade directive. Always consult a qualified financial advisor before making investment decisions.

What gets analysed

Each time the Strategy page runs, it analyses your current portfolio snapshot across five dimensions:

  • Allocation drift — how far your current asset-class weights have moved from your target allocation. A drift of ≥ 5 percentage points on any position triggers a rebalancing flag.
  • Concentration risk — single-stock and single-sector exposure. Holdings above 20% of portfolio value or sectors above 35% are flagged as concentrated.
  • Fee drag — estimated annual cost of MERs across your ETF holdings. Luum uses a curated MER table for Canadian ETFs and EODHD data for US ETFs.
  • Income & dividends — annualised dividend yield across your holdings, broken down by account type.
  • Benchmark gap — how your time-weighted return compares to your benchmark index over 1Y and YTD periods.

Suggested trades

When allocation drift exceeds the threshold, the Strategy page generates suggested trades — pairs of "sell X, buy Y" instructions that would bring your weights back to target. These are illustrative examples, not orders. Luum cannot execute trades. The suggestions do not account for tax consequences, wash-sale rules, or your specific account restrictions (e.g., what assets are eligible inside an RRSP).

A suggested trade is only generated when both of the following are true:

  • The drift on a position is ≥ 0.05 percentage points from target.
  • The implied trade size is ≥ $1.

Monte Carlo projections

The projection chart runs 1,000 simulated portfolio paths over a 10-year horizon using historical volatility and correlation data for your current holdings. The chart shows the 10th, 50th, and 90th percentile outcomes. These projections are statistical illustrations only — they are not forecasts and do not guarantee any future return.

Peer cohort benchmarking

Luum compares your portfolio's risk/return profile to an anonymised peer cohort of investors with a similar risk tolerance and account size. This gives you a sense of whether your allocation is typical, more aggressive, or more conservative than comparable investors.

ETF look-through

For ETFs you hold, Luum looks through the fund to its underlying constituents and rolls them into your overall sector and geography breakdown. This gives you a more accurate view of your real exposure than treating each ETF as a single opaque position.

Update schedule

The Strategy page refreshes automatically once per week. You can trigger an on-demand refresh at any time — this consumes AI answers (3 answers for a standard refresh, 5 for a deep analysis). The timestamp of the last refresh is shown at the top of the page.

Not on Wealth tier? Learn about AI answers and tier features →