What Does Quarterly Rebalancing Mean for All Weather?

What rebalancing means

When assets perform differently, their weights can drift from the intended mix. Rebalancing is a process of moving a portfolio closer to its chosen allocation. It can involve selling an overweight position or buying an underweight position, depending on the plan and provider process.

Finnomena states a quarterly review approach for this strategy, but check the current recommendation, fund list, and order steps each time. The timing and transactions can differ from one review to another.

Rebalancing is not market timing

Adjusting a portfolio on a schedule is intended to keep it aligned with a plan or investment view. It does not mean the manager can identify market peaks and bottoms, and it does not prevent a decline in portfolio value.

Investor.gov explains that different returns can shift a portfolio’s weights and change its risk. Rebalancing can bring the mix closer to a chosen allocation, but investors should consider transaction costs and possible tax consequences before acting.

What to review when an adjustment is announced

1. Check the announcement date and whether it is a quarterly review or a risk-reduction adjustment.
2. Compare the new fund list and weights with the portfolio you hold.
3. Identify any purchase, sale, or switching orders.
4. Review costs and cut-off times for each fund.
5. Confirm whether you must place the order or have enabled Automatic Allocation.

Do not submit an order based only on a notification. Confirm details in the official app, especially if a message sends you outside the app.

Keep your own financial plan in view

Decide what the money is for and what changes would cause you to revisit your plan, such as a new goal, lower income, or an approaching spending date. The portfolio’s rebalancing process does not replace a review of your cash needs.

See Finnomena’s current All Weather page and the guide to Automatic Allocation.