Portfolio Monitoring & Rebalancing
Quarterly, we review performance of client portfolio holdings and allocations. For the actively managed mutual funds and the Separately Managed Accounts in which we are invested, we look to confirm on a quarterly basis that the managers continue to invest using the same styles and strategies for which we allocated to them in the first place.
We also monitor performance of holdings in structured investment products to see that they continue to behave as expected.
When we find that either the returns of a holding or changes in portfolio cash flow, are tipping an allocation into an unintended overweighting or underweighting for a client’s portfolio, we rebalance the portfolio so it again aligns with the custom investment strategy we created for the client.
The benefits to this approach include having the potential to better keep the desired risk/return profile as intended and to improve the likelihood of selling high and buying low for the portfolio.