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 ?
The Rebalance was drafted in accordance with the Law on Budgets of the Federation of Bosnia and Herzegovina, the Law on Execution of the FBiH Budget for 2019 and Revised Projections of Revenues.
Art by Branche CoverdaleRetirement savers are often presented with a simple message about portfolio allocations: Rebalance regularly.
According to Austin, plan sponsors should keep in mind the many investment options plan participants must rebalance. For example, though participants holding premixed and actively managed asset-allocation portfolios such as target-date funds (TDFs) can rely on these getting rebalanced regularly, participants who are only partially invested in them should be urged to look across all their holdings.
As China rebalances, by definition its export competiveness will erode, and this will be positive for manufacturers, especially in other developing countries.
How a Chinese slowdown affects the global economy, in other words, depends crucially on how China rebalances. The seeming determination of Premier Li Keqiang to come to grips with debt and force a rebalancing even if that brings, as it must, a sharp slowdown in economic growth bodes well for an orderly rebalancing which will benefit most of the world.
"There is no need of a rebalance but if the state continues with the unproductive spending, we will face the same destiny as Greece did," says Visar Ademi.
If you have a sizeable amount invested in the market and the surge in equities has drastically changed your asset allocation, it may be time to rebalance.
When and how often should fund investors rebalance their portfolios?
In previous section, the investor is assumed to continuously rebalance his portfolio.
Otherwise, for example when market fluctuations are significant, he may rebalance his portfolio in order to keep the ratio exposure/cushion within a given set of values.
Unfortunately, Rebalance left me with the latter impression.
I had booked the in-house Signature Rebalance Massage, having had a very stressful fortnight which left me in need of some pampering and no small amount of unknotting.