Rebalancing


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Rebalancing

Realigning the proportions of assets in a portfolio as needed.

Rebalancing

The act of changing the percentages of different types of securities in a portfolio, especially according to changes in one's investment goals. Most portfolios are diversified to a greater or lesser degree; that is, they contain different types of securities in different proportions. If one's investment goals change (or if the portfolio is not meeting them satisfactorily), one rebalances the portfolio in order to achieve them. For example, if a portfolio is half bonds and half stocks and an investor wishes to have lower risk, he/she might rebalance the portfolio to be three quarters bonds and one quarter stocks.
References in periodicals archive ?
10, 2015 /PRNewswire/ -- Alerian announced that due to an unprecedented decline in MLP unit prices over the last quarter, it will not apply the adjusted market capitalization test to existing constituents of the Alerian Index Series during the upcoming quarterly rebalancing, which will take place following the close of business on December 18.
Academic Taki Fiti has recently said that rebalancing the budget is indispensable.
WASHINGTON (CyHAN)- Washington's rebalancing to Asia policy may need some "rebalancing" so that the United States can maintain a good relationship with every nation in the region, China's ambassador here said Tuesday.
With the drawdown of the wars in Iraq and Afghanistan the great change in American strategy appears to be a rebalancing in East Asia and the Pacific to counter the rise of China.
We were promised the march of the makers, rebuilding the workshop of the world would lead to a surge in investment driven by a low cost of borrowing and a rebalancing of the economy to net trade growth pushed by a lower value of the currency.
a leading provider of software and services for the global investment management industry, today announced the availability of a multi-custodial rebalancing solution for its Black Diamond platform.
In a new report - 'A vision for rebalancing the economy' - the CBI sets out how by acting now, the UK can move away from its dependence on debt-driven household and government spending and increase business investment and net trade.
After evaluating four possible rebalancing scenarios based on varying levels of contribution to growth from trade, investment and consumer spending, the CBI has set out the most likely "base case", based on a typical private sector recovery.
Treasury indexes that rebalance daily offer the advantages of reduced tracking errors when rebalancing portfolios and provide a more accurate reflection of current market conditions.
Before thinking about rebalancing, you need to determine your asset allocation, and then find out about the existing mix.
Usually, results about CPPI method are established under the assumption of continuous-time rebalancing.
Deputy Prime Minister Zoran Stavreski said there was no need for rebalancing the budget this early in the year.