Why is my portfolio allocation different from the target allocation?

Over time, the value of individual investments and fund performance in your portfolio will move up or down and can lead to a divergence between the target asset allocation and actual portfolio allocation weights. If an underlying fund drifts by more than 15% from its target allocation (i.e. a fund with a target allocation of 20% moves by +/-3%), we will send you an email to inform you. Please note that if the deviation from the target allocation is less than $100 in value, no rebalancing will be advised. Read more about rebalancing here.

Any flows in and out of the account will be used to rebalance your portfolio towards the target weights. Our analysis shows that this is the optimal rebalance and until such a meaningful divergence occurs, empirical evidence shows that there is no benefit to rebalancing more frequently. Therefore during certain periods, your portfolio allocation may have slight differences compared to your target allocation due to the fluctuations of the underlying investments.