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NAC 263AnnualReport032713v2 Indd ASSET REBALANCING FORM LIFE Ncaa

NAC 263AnnualReport032713v2 Indd ASSET REBALANCING FORM LIFE Ncaa

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[Music] welcome to the Morningstar Investment Board I'm Holly black and today we are going to talk about rebalancing what is rebalancing I hear you cry it's another investment word that's pretty jargony but it is one that's worth knowing about so rebalancing is a piece of admin you'll perform on your investment portfolio once or twice a year and the idea is you do a bit of tinkering to make sure it looks like you'd originally planned it to look and therefore it will perform as you expect it to look imagine it's like leaving the kids in the front room or you go and make you know you need to know they're gonna sit there playing nicely not wait till you're out the room and then start beating each other up and throwing things out the window maybe that's quite extreme so to illustrate this let's think about an imaginary portfolio we're going to just use a for stock portfolio mostly because it's easiest for me to draw so I'm gonna have 10,000 pounds in my portfolio and I'm gonna split it eq

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