Portfolio management at the end of the quarter means the conclusion of one of four three-month periods of investor’s financial calendar. The quarters typically end in March (if it’s Quarter 1, June for Q2, September for Quarter Three; and December for Quarter 4. These days are considered important periods for investors, wealth management companies and mutual funds. Many businesses or agencies, analysts and auditors, and even regulatory authorities release new quartterly data about international markets, local and globalc economic indicators at the end of each quarter, bit in some cases this may happen semi-annually as well. Generally, the Securities and Exchange commission and other financial market regulators require public companies to issue quarterly reports and file quarterly statements to be as transparent as possible to investors.

Portfolio Management

There is a well-known information in financial circles thatt mutual funds, wealth managers, pension funds, hedge funds typically rebalance their investment portfolio on quarterly basis. There is no fact or evidence that everyone follows this practice, the idea make the role of the quarter’s end more important. If institutional investors or leading investment management companies do not rebalance their investment portfolios at the end of the quarter, retail investors typically put more emphasis on re-evaluation of their portfolio management strategy and set new portfolio targets for upcoming quarter.

Rebalancing a Portfolio of Individual Investor

Rebalancing consists of periodic purchase and sale of assets to accelerate the growth of investor’s Net Worth and select more promising securities that have stronger potential to growth. Consider an investor who looks to build his portfolio this way: 40% growth stocks, 30% income stocks, 20% bonds and 10% cryptocurrencies or crypto funds. If growth stocks out performs the income stocks in the first quarter, investor decides to increase the share of growth stocks to 50% and decreases the share of income stocks to 30% by purchasing and selling selected positions on the market.

For example, portfolio managers of Einvestment Fund allocate 25-30% of the assets in crypto to ensure sustainable income to investors, while annual portfolio turnover rate exceeds 65% in 2020, according to performance report. In other words, buying low and selling high is the target of portfolio rebalancing. However, investors should never forget about risk management and never invest too aggressively to minimize the risk of significant losses or too large and too long drawdowns.

Institutional Investors – Rebalancing

Portfolio rebalancing is also important step for institutional investors, mutual funds. and ETFs who are looking to improve portfolio management strategy on quarterly basis. There are Passive Funds and Active Funds. Passive funds typically peg their portfolios to indexes and they usually do not need quarterly rebalancing. Active Funds that are also known as Actively Managed Funds employ more dynamic approach to portfolio management and rebalancing, so such funds are generally active at the end of the quarter.

More about Einvestment Fund

Einvestment is an offshore fund headquartered in the Cayman Islands. The Fund has been operating since 2018 and offers selection of Segregated Investment Portfolios for asset allocation and tax-efficient investing. There are low-risk and high-risk investment products with different level of risk and return potential. For example, top-performing product of the Fund has generated over 330% total return in 31 months.

Moreover, the fund offers low investment minimums, instant access to investing with Automated ID Verification, monthly income distribution, competitive fees, real-time reporting and much more benefits to investors. If you have already retired and seek to invest for retirement, Einvestment offers reduced performance fee of just 15% exclusively for retired investors who allocate their savings to the Fund’s investment products.

Looking to supercharge your portfolio and power your income? Take a closer look at the Fund’s products and proceed to compare investment options.