Strategy

Rebalancing

Rebalancing brings the current allocation back towards an agreed target. Contributions, withdrawals or trades can help; choosing a new target allocation is a strategy change.

Your investment mandate records target weights, tolerance bands and review dates. Rebalancing implements those existing rules instead of revising the strategy after each price move.

Illustrative example: an equity target of 60% with a review band of 55 to 65% calls for a review at a current weight of 66%. That is a deviation of 6 percentage points, not a relative deviation of 6%. A review trigger is not an automatic sell order.

New contributions can strengthen underweight holdings without selling existing positions. Purchases can still incur costs; sales can also trigger taxes.

The terms in practice.

Rebalancing as discipline, not timing

Rebalancing is not a return lever but a way to steer risk: a fixed rule that sells what has risen and buys what has fallen, and takes the decision out of the moment.

The quiet cost of tinkering

Why frequent reshuffling costs return, and what a calm portfolio preserves.

Rebalancing

The terms in practice.

Rebalancing as discipline, not timing

The quiet cost of tinkering

From knowledge to clarity