CALI TECHNOLOGIESDocumented allocation methodology for research and supervisory review.
A transparent, rule-based framework for mapping profile inputs to risk bands, digital exposure limits, and illustrative sleeve allocations — built for repeatability, version control, and committee review.
Research and modeling environment only — not personalized investment advice or discretionary management.
Profile inputs
Ten core inputs describe risk preference, financial posture, experience, and horizon. Each maps to a numeric contribution; the aggregate score drives illustrative band assignment.
- Age and time horizon
- Income stability and liquidity needs
- Investing experience and loss reaction
- Digital familiarity, comfort, and concentration tolerance
- Sleep-at-night risk preference
Scoring scales are defined in engine logic (compute_profile_score) and can be versioned as supervisory feedback accumulates.
Risk bands
Total profile score maps to one of five bands — each describing a distinct balance between capital preservation and growth-oriented exposure.
- Band 1 — Capital Preservation · Overweight cash and bonds
- Band 2 — Conservative · Fixed income with selective equities
- Band 3 — Balanced · Moderate growth and stability mix
- Band 4 — Growth · Higher equity tolerance
- Band 5 — Aggressive · Long-horizon growth with bounded digital sleeve
Band thresholds are defined in determine_risk_band and documented for audit and committee review.
Digital exposure limits
Digital assets are modeled as a distinct sleeve with hard caps derived from risk band and combined familiarity / comfort scores.
- Band-specific maximums (e.g. 0–2% preservation through ~20% aggressive)
- Stricter limits when familiarity or comfort scores are low
- Zero digital sleeve when both familiarity and comfort are minimal
- Core / satellite split inside the digital sleeve (typically 70 / 30)
Sleeves and construction
Each band carries base weights across institutional sleeves. Digital exposure is introduced by reducing equity sleeves — not cash or bonds — then normalizing to 100%.
- Cash and bonds
- Core and satellite equities
- Real assets
- Core and satellite digital
Starting weights are defined in base_band_allocation; construction steps are deterministic and reproducible for supervisory files.
Framework boundaries
The framework prioritizes interpretability over optimization. It does not forecast returns or operate as a black-box allocator.
- Explicit profile-to-band mapping
- Transparent band-to-sleeve weights
- Documented digital caps for lower-risk profiles
- Logic suitable for risk, compliance, and committee review
Scoring weights, band thresholds, and sleeve definitions may evolve with stress testing and supervisory input — material changes are documented in ADV & Disclosures.
Apply the framework in the workspace
Open the Portfolio Strategy Simulator to run documented scenarios, or review the Investment Framework for operational context.