Rebalancing Your Portfolio – Why do PortfolioMetrix do this?


Rebalancing your portfolio is a key function of what we entrust PortfolioMetrix (PMX) to do while managing your investment.

The reason they rebalance your portfolio is twofold:

  1. To make sure the asset allocation (how much you own in shares, property, bonds and cash) is still the right mix to achieve your specific investment strategy.
    The risk you take in investing is PMX’s number priority and so rebalancing the asset allocation mix makes sure they are taking on the least risk possible to achieve your investment strategy return.
  2. To take advantage of good opportunities in asset classes and therefore generate a real return, over time.

What changes are PMX making to my Portfolio?

With the recent drop in local shares and local property, PMX are going to be moving money from local cash, local bonds, global bonds, global equity and global property back into local shares and local property.
This is exactly what we entrust PMX to do, especially in volatile times when they need to stick to their philosophy and process.
The simplistic graphic below shows you the process described above:

When will this happen, and what do I need to do?

PMX will implementing this rebalance starting on the 7th of April 2020 and will be using the month of April to make sure all client portfolios are fully and correctly rebalanced.
This is done entirely by them through your administrator, and you do not need to do anything.

Importantly, you will still receive any income from your investment, and you will be able to make contributions, at any stage in this process, to your investment.

If you have any further questions, please contact your RetiremeantTM Specialist.

Comments (2)

  • Hi,
    Thanks for the article, and information.
    Surely, in the months and years ahead, the need for “office space” in central areas of large and small cities( globally and locally), and the need for lavish shopping centres will reduce signficiantly.
    Therefore, while I would support investment in ” mixed developement ” type ventures, I would significantly worry bout having a large percentage of any fund, in high density / high rise office type property, or indeed in shopping malls with the ever increasing use of shopping on line/ Amzon and the like.

    • Dear Peter,

      Thank you for your feedback and comment. We really appreciate you reading the article and sharing your thoughts.

      We agree with you completely about being cautious of holding any significant weighting in our client’s portfolios directly exposed to property. Especially property funds that have high exposure to dense office space and shopping malls. The fund managers have been very cautious of these property fund for a good few years now and have preferred to invest in well diversified companies that have low leverage (very manageable debt) and assets that are spread across industries and countries. In saying this, the overwhelming majority of our client’s portfolios have 1% – 5% directly invested in property funds which are themselves diversified from pure office and shopping mall space.

      We are always happy to discuss this further. Please let us know and your Retiremeant™ Specialist, Jason, will give you a call.

      Kind regards,


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