Asset Rebalancing Strategies

Asset Rebalancing Strategies

Asset Rebalancing strategies are actually recorded in the Account record. Percentages are kept in the first Budget field. The alternative target type, fixed (dollar) targets, is kept in the second Budget field. The Asset Rebalancing system assists you in making entries in these fields.

NOTE: Refer to the Account Tab for more information on the Budget fields.

• Fund Targets help you to set targets on a Fund-by-Fund basis. Refer to Setting Investment Targets for Individual Funds for more information.
• Pool Targets help you to set global targets for all Funds, or for a group of Funds defined by Fund code range. You can use these targets to make Asset Rebalancing skip specified Pools or Accounts. For example, some organizations move available assets from certain Funds out of the pool to a checking account at the beginning of the year. For this group of Funds, they would want Asset Rebalancing to ignore the checking account. Refer to Setting Pool Targets for more information.
• Prior Year Targets allows you to move targets from one year’s Account records to the next year’s records. Since the targets are recorded in the Account records, and there is a new set for each year, this is a necessary end of year process. Refer to Copying Prior Year Targets for more information.
• Ratio Targets sets percentage targets to mirror the current balances held by each Fund in the asset accounts. This is useful when Asset Rebalancing is first initiated, so you can change targets by increments – avoiding drastic readjustments. Refer to Building Ratio Targets for more information.