Andrew Morris: Rebalancing act

Simply put, the topic of rebalancing is divisive among advisers and there is no clear guidance in the industry as to best practice - particularly with regard to the best outcomes for clients. This has been highlighted by the growth of multi-asset risk-rated and risk-targeted solutions in recent years. These portfolios are designed to be managed within a specific risk band and are often monitored by a third-party agency. These agencies quantify the different risk and return characteristics of different asset classes, blending them together to come up with asset allocation models. Typicall...