Percentage of Portfolio Rebalancing

Hi all,

When one individual asset class strays out of its defined corridor width, does this also call for all other asset classes to be reset to their target weights (even if they are still within their corridor)?


normally yes. if no specification, u should assume that all will be rebalance to target

Yes, and remember that +/- 10% is really +/- 5%, which is ridiculous.

What do you mean by this? Can you give an example?

The only thing that comes to mind is sometimes they word it like 50% ± 10% and sometimes they give you the factor and you need to multiply it by the target which in my case would be ± 5%