REVIEW AND REBALANCE YOUR PORTFOLIO
TO KEEP YOUR PLAN ON TRACK
The right asset mix is important for investment success, but so is
maintaining it over time. Due to market activity, assets grow at different
rates, and the weightings of each asset class in your portfolio may shift.
As seen in the pie charts below, if the shifts are significant, your asset mix
might no longer accurately reflect your needs or your investor profile.
Working with your advisor, you can bring your portfolio back into
alignment with your investor profile.
Rebalancing regularly is part of a disciplined approach to investing.
It helps prevent overexposure or underexposure to any one asset class
and encourages you to buy low and sell high.
How your asset mix can drift
THE EQUITY AND FIXED-INCOME PORTIONS OF A BALANCED PORTFOLIO BUILT IN 2003
WOULD HAVE SHIFTED OVER TIME AS A RESULT OF MARKET PERFORMANCE. LEFT
UNTOUCHED, AFTER FIVE YEARS, THIS NEW ASSET MIX MAY LEAVE THE INVESTOR WITH
MORE RISK THAN WAS SUITABLE FOR HIS OR HER PROFILE.
Fixed income – S&P/TSX Canadian Bond Overall Index.
Equities – S&P/TSX Total Return Composite Index.
A regular review keeps you on track
By meeting with your advisor at least once a year, you'll be able to make sure your portfolio continues to meet your goals. And if your goals or personal circumstances change at any time, you should revisit your plan and make the necessary adjustments. If you feel worried about your investments, your advisor can help you stay the course or make the necessary decisions.
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