Percentage of portfolio rebalancing

if we have a strategic asset allocation weight of 73% with corridor width +/-4% and at june 30 the current allocation is 71%.

The question is what would be the weight allocation on July 1st?

My thought is that since the corridor have not been breached the weight coul remain at 71%.

Any thoughts?

If there is no calender rebalancing, it should be right.

If other assets in the portfolio are out of strategic ranges, I think all assets would be brought back to strategic weights. However, if not, then I believe you are corrrect.

The trigger on one asset resets them all?

I guess you’re right. Oversaw the maths behind it.

It’s scary how much you still learn before the exam!

Yes, I believe so. Ran into this on a scwheser mock.

+1 since you dont know how many else asset classes your portfolio holds and in how much weight they changed. There was a mock question or a question somewhere which fools you that way

Yeah if you have multiple asset classes and only one if them breaches the corridor, they all get reset back to policy weight… If you only have 100% to play with, the math suggests that should be the case. If you’re reducing allocation to one class, you have to by definition add it somewhere else and vice versa.

2010 AM as well.

So if this is all the only asset class that you have, since 71% is still within the band of (70.08%, 75.92%), according to calendar rebalancing you do nothing but according to percentage of portfolio rebalancing you have to move the allocation to the optimal allocation which is 73%?