When any one of the investments in your account is more than 5% away from their target weight we will automatically sell enough of those investments to get back to their target weights. We will then use the proceeds to buy more of the investments that were below their target weights. You don’t have to call or e-mail us, everything is taken care of automatically.

What could potentially trigger a rebalancing:

  1. When the market moves, not all funds go up or down in the same direction or by the same amount. This will result in the weight of some funds exceeding their target, while others could have a weight below their target. If any of the funds have a weight that is more than 5% below or above their target, then the account would be rebalanced by selling the overweight positions and buying the laggards.

  2. If a client makes a deposit to their account that increases the cash balance to more than a specified threshold, then the account would be rebalanced by buying more of the asset classes that are below their target weights.

  3. If a client changes their investment goal, timeframe, and/or has a change in their financial situation and updates their profile accordingly, they may be recommended a different risk level than their account is currently invested in. As a result their account would need to be rebalanced.

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