Because markets and asset classes rise and fall, avoiding a drift over time from asset allocation targets is important to the investment plan. Disciplined, systematic portfolio monitoring and rebalancing helps to maintain the initially targeted risk and diversification guidelines.

While disciplined rebalancing provides no guarantees of improved returns over time, it does instill an inherent bias towards buying assets that have fallen in price and selling those that have appreciated – a buy low, sell high strategy.

We regularly monitor client portfolios and rebalance when asset class weights drift meaningfully away from targeted allocations.

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