10 mins read 30.08.2022
By Sha Omar
The rain in Spain falls mainly on the plain.
That’s the future of wealth management and that’s what we’ve built into our portfolio management module at WealthOS. Senior Product Owner Anjana Jayawardena is here to give you a glimpse into the future that’s yours to access today.
What is portfolio rebalance?
A client’s investment holdings, linked to a model portfolio, may change in value due to market price movements, shifting the holdings distribution away from the target percentages defined in the portfolio.
This requires a portfolio manager or a robo-advisor platform to:
- regularly evaluate investor accounts and identify which investor accounts have drifted away from the target value;
- identify which investments have gone either overweight or underweight for each drifted investor account;
- decide which of the investments need to be corrected and by how much;
- place buy orders to purchase more units of underweight investments and place sell orders to release units of overweight investments.