Rebalancing

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Rebalancing

Realigning the proportions of assets in a portfolio as needed.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
In contrast to the limited permanent-base approach of the 1980s, the US military rebalance relies upon rotational deployments through several host-nation port facilities.
This step, together with a continuous effort by the ECB to meet its 2% inflation target, could help to rebalance competitiveness while keeping debt sustainable.
Our main contribution is adding a constraint to confirm the necessity of rebalance. The portfolio rebalancing problem with self-finance strategy is modified by introducing a constraint of expected excess return requirement in this paper.
The moot point is whether the rebalance to Asia can in fact resolve the fundamental challenges facing the United States of America and its allies in the region.
Whether slowing Chinese growth is good or bad overall for the world, in other words, depends on how it affects China's balance of trade, and this depends on how swiftly and forcefully Beijing is able to constrain credit growth and rebalance the economy.
"We welcome the Government's ambition to rebalance the economy towards the private sector making up a greater share of wealth creation in the UK.
The government has a key role to play but has so far lacked the ideas and the will to make the bold reforms needed to rebalance our economy.
The Growth Factory published reports on how to rebalance the economy to provide growth.
The growth and availability of liquid alternative mutual funds also allow advisors to rebalance client portfolios at appropriate intervals.
"The faltering recovery with family and business budgets under pressure and the on-going crisis in the Eurozone are stark reminders of the need to rebalance our economy away from household and government debt.
debt issuance market via its daily rebalance methodology," they said in a press release.
It suggests that policy-makers should focus on global savings and investment structures to rebalance world economy.