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.
+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.
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%?