Andrew Morris: Rebalancing act

What frequency delivers best for clients?

clock • 4 min read

Multi-asset portfolios vary widely in their approach to rebalancing - some do so daily, some monthly and others quarterly - but to what extent does the frequency really matter? Andrew Morris takes a closer look

Simply put, the topic of rebalancing is divisive among advisers and there is no clear guidance in the industry as to best practice - particularly with regard to the best outcomes for clients. This has been highlighted by the growth of multi-asset risk-rated and risk-targeted solutions in recent years. These portfolios are designed to be managed within a specific risk band and are often monitored by a third-party agency. These agencies quantify the different risk and return characteristics of different asset classes, blending them together to come up with asset allocation models. Typicall...

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