When it comes to investing, rebalancing your portfolio can be integral to achieving your goal. However, it’s discussed far less frequently than performance data or diversification. We wanted to take a moment to highlight why rebalancing is so important. We’ll also dig into how we rebalance client portfolios at Quorum.
When we work with clients, we look at your overall finances to come up with a financial plan, including an asset allocation model that aligns to your objectives. In other words, our goal is to combine a variety of assets to create a personalized portfolio that reflects your goals, circumstances, and risk tolerance.
With that asset allocation model in hand, we work with a team of portfolio managers who each specialize in specific investment strategies, which are represented in separately managed accounts. For example, one manager might focus on large-cap, international companies. Another manager might focus on income generation and look for U.S.-based, dividend-paying stocks.
Portfolio managers we work with rebalance periodically to keep their accounts aligned with their investment objective. That’s the first layer of rebalancing. Then, the Quorum team regularly reviews how all of these accounts are working in tandem with market conditions, the broader economy, and your goals. We may rebalance managers to keep your portfolio aligned with your target asset allocation.
During client check-ins, we’ll review your overall asset allocation with you to see if it still aligns with your situation, goals and risk tolerance. If not, we can rebalance how your funds are distributed across these accounts, creating a new target allocation.
If you have questions about the investment process at Quorum, the portfolio managers we work with, or the balance of your existing portfolio, set up a meeting with us to discuss.
