What is rebalancing and how does it work?
It’s expected that over time, each portfolio’s actual asset allocation will vary from its target asset allocation due to normal price variations in the market or money movement, such as a deposit or withdrawal. This can affect portfolio performance and impact the target risk and asset class allocations of your portfolio. We have two features, facilitated via a portfolio management system, to help keep your portfolio on track for your target allocation: If you make a deposit into (or withdrawal from) your account that reaches a certain threshold, your money will be allocated so that your portfolio is rebalanced back in line with your selected portfolio’s target weights, or as close to these weights as possible. Additionally, we will regularly review your account, using a portfolio management system, to determine if your ETF holdings deviate from the target allocations in your selected portfolio. We will review such deviations and will periodically rebalance to bring your holdings back in line with the target allocation of your selected portfolio. Our investment advisory personnel have the ability to override or delay rebalancing under certain circumstances, such as volatile market conditions, that they determine may negatively affect client accounts.