The recorded mix can move away from a target
Vanguard’s educational explanation describes rebalancing as adjusting asset proportions back towards a target mix. Different investment performances can change the proportions over time. Rebalancing may involve purchases and sales or directing new money to particular investments.
This is a definition from an investment provider, not an endorsement of that provider, its products or a target portfolio. No example percentage, threshold or schedule from its article is adopted here.
Ask what your arrangement actually does
Start with the dated scheme or fund description. Ask whether there is a target mix, who manages it, what changes are automatic and where any associated charges are explained. Do not infer a service from a fund name or assume every scheme works the same way.
Keep a reported holding distinct from a target and from your own proposed change. If a document uses rebalancing without an explanation, retain that term in your enquiry. Preparing questions is not a request to trade or switch.
- Which document defines the target and responsibility?
- What does the provider say happens automatically?
- Which costs or consequences require clarification?
A process is not a suitable allocation
Investments can fall as well as rise. Past performance does not predict future returns. Rebalancing does not become a guarantee of profit through this guide.
The allocation and default-fund guides help you distinguish the recorded arrangement from individual decisions. All Pensions does not choose a target, monitor portfolio drift or execute changes. Seek appropriate guidance or authorised individual advice for unresolved decisions.
Sources: FCA: Risk and returnsVanguard: Portfolio rebalancing explained
Sources & review
- Vanguard: Portfolio rebalancing explainedChecked 2026-10-04
- FCA: Risk and returnsChecked 2026-10-04
Next scheduled review: 2027-01-04. Provider details can change sooner. Use the official website for the current contact route.
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