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The Value of Regular Rebalancing
Regular monitoring and adherence to fixed asset allocation targets can
enhance the performance of an investment portfolio. We establish
specific asset allocation targets for each client and rebalance on a
regular basis to ensure that our portfolios remain on target. As
markets have a tendency to revert to the mean, this rebalancing activity
has added to performance in the past.
| |
No Rebalancing |
Quarterly Rebalancing |
Semi-Annual Rebalancing |
Annual Rebalancing |
| Portfolio Return |
8.30% |
8.82% |
8.68% |
8.82% |
| Portfolio Standard Deviation |
11.85 |
11.03 |
10.92 |
10.93 |
Source: Barclays Global Investors. Data comprises 10 years ending 12/31/02. Portfolio is mixture of Russell 1000, Russell 2000, MSCI EAFE and Lehman 20+ US Treasury Indices.
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