Rebalancing is a final tool we add to the asset allocation process. This is the act of restoring your portfolio to its original asset allocations and risk profile. Because each asset class within your portfolio is likely to shrink or grow by a different percentage over time, maintaining your portfolio’s original design is an ongoing process, not unlike periodic maintenance of a carefully shaped topiary. As an added bonus, rebalancing helps you develop sound, long-term investment habits. By trimming allocations that have been recently outperforming, and expanding on those that have been recently underperforming, you are naturally adopting a desirable “buy low and sell high” approach.

At the same time, rebalancing too often or too severely can be costly. Doing so usually entails transaction costs and potentially taxable realized gains. Our role as your advisor is to help you maintain the delicate balance required to help your portfolio maintain its intended shape — without pruning too much or too often.

We Enhance Returns Through Rebalancing

• Successful investing means accepting the inevitability of negative short-term fluctuations.
• Bad days are in fact built into our investment strategy.
• We use the investment principle of rebalancing to take advantage of both positive and negative fluctuations.
• Through periodic rebalancing, our clients can SELL HIGH and BUY LOW – every investor’s desire.
• Rebalancing is used to manage risk and may enhance returns over time.