Rebalancing Portfolios Because certain investments will inevitably outperform others, they can grow to represent a disproportionate share of a portfolio if left unchecked. Therefore, we periodically rebalance our portfolios to keep them within agreed-upon asset allocation parameters. While it may seem counterintuitive to sell investments that have generated the best returns, generally adhering to specific asset allocation guidelines is essential to controlling risk. Moreover, by intelligently matching realized gains with any losses in the rebalancing process, we can minimize the tax consequences of our investment decisions. Past performance may not be indicative of future investment results.
Any investment involves potential risk, including potential loss of capital.
Before making any investment decision, please consult your legal, tax and financial advisors. If you are interested in receiving further information about these services, U.S. Trust can send you printed materials. All rights reserved.