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Disciplined
Rebalancing

It’s uncomfortable to add money to poorly performing categories, but doing so is proven to add value over time. It works at the asset-class level (U.S. stocks, international stocks, U.S. bonds, etc.), and it works within asset classes (individual stocks, certain types of bonds, etc.).

An Intelligent Approach

  • Keeps portfolios on track with long-term goals
  • Eliminates costly emotional mistakes
  • Enhances risk-adjusted return by creating a systematic way to buy low and sell high

An Intelligent Approach

  • Keeps portfolios on track with long-term goals
  • Eliminates costly emotional mistakes
  • Enhances risk-adjusted return by creating a systematic way to buy low and sell high

Our software reviews portfolios daily for rebalancing opportunities. Rather than set hard triggers, our approach relies on exception reporting to identify when to evaluate whether a rebalance is beneficial. As a general rule, high-level asset classes will be rebalanced if they deviate more than a few percentage points from target, while specific securities are reviewed if they move more than 0.5% from target. Taxes are strongly considered in the decision.

Our goal is to keep turnover under 15% in most years, a threshold that should be sufficient to capture the full power of rebalancing. Due to our granular approach, we conduct several small rebalances per year, with some activity occurring in most months.

Benefits of Your
Personal Strategy®

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