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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 MDA Investment Program. This is because the asset allocations of your portfolio can drift over time from their target allocations.

a. Rebalancing during specific events

We monitor your portfolio for rebalancing during specific events. We consider whether we should rebalance your portfolio whenever:

• 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 another portfolio into the portfolio.

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. If the drift between defensive assets and growth assets exceeds 15% for more than three months, we will rebalance the relevant securities.

Also, we check whether any asset class in your portfolio has drifted beyond a set percentage threshold from its target allocation.

We also consider various other aspects before we rebalance, including:

• 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 asset class exceeds 20% for more than three months, we rebalance one or more securities in that asset class. In this case, we execute a buy or sell trade towards rebalancing if the trade value is at least $3,000. Your dashboard shows the percentage by which each of your asset classes has drifted from its target allocation.

Refer to our Investment Methodology page for more information.

Also read the answers to the related questions:

• Can I choose what to do with the dividends that get paid out? What are my options with dividends?
• Do you offer a distribution reinvestment plan?
• Do you rebalance a portfolio whose value is less than $10,000?
• Do you rebalance a portfolio that is not a fully-diversified portfolio?
• Why do you rebalance a portfolio?