View the entire Frequently Asked Questions (FAQs)
When do you rebalance my portfolios?
QuietGrowth monitors your portfolio for specific events and asset allocation drift to ensure that the portfolio stays within the Investment Program. This is because the asset allocations of your portfolio can drift over time from their target allocations.
a. Rebalancing during specific events
- you deposit funds;
- you instruct us to withdraw funds;
- your cash account receives distributions or dividends;
- you change the risk score of the portfolio;
- we change the target allocation of the portfolio; or
- you merge portfolios.
In this case, we execute a buy or sell trade towards rebalancing if the trade value is at least $3,000.
b. Quarterly review for rebalancing
We review your portfolio for rebalancing every three months to check if any one of the funds in your portfolio has drifted by a certain percentage from its target allocation that is mentioned in your Investment Program.
- the cash available for rebalancing;
- the size of any anticipated distributions and dividends;
- the drift between defensive assets and growth assets;
- the volatility of the securities in your portfolio; and
- the impact on capital gains taxation because of rebalancing.
If the drift for any security is more than 20% for longer than three months, we rebalance that security. In this case, we execute a buy or sell trade towards rebalancing if the trade value is at least $3,000.
If the drift between defensive assets and growth assets is still more than 15% for longer than three months, we will rebalance the relevant securities.
Refer to our Investment Methodology page for more information.