Rebalance with Portfolio level targets?

[Econdoc]

Hi Mark;

I have read through the Help contents and browsed through the forum, but did not come up with the answer to my problem. I want to set rebalancing targets that are sums of Asset Type labels. I will try to explain with a relatively simple example.

Suppose that I have the following Portfolio structure

Master Portfolio
....Roth Accounts
........ Fund A
........ Fund B
.... IRA Account
........ Fund C
........ Fund D

Funds A, B, C, D may each have Asset labels showing Large Cap Value, Large Cap Growth, Small Cap Value, Small Cap Growth, Midcap Value, Midcap Growth components. I view the Asset Type Labels as a description of the composition of that specific fund. Correct? Say Schwab Fund A is 75% Large Value, 20% Mid Cap Value, and 5% Small Cap Value.

I would like to set rebalancing goals for the entire Master Portfolio like the following:
Large Cap Value + Large Cap Growth = 60%
Small Cap Value + Small Cap Growth = 10%
Mid Cap Value + Mid Cap Growth = 30%

Large Cap Value + Small Cap Value + Mid Cap Value = 70%
Large Cap Growth + Small Cap Growth + Mid Cap Growth = 30%

In words, I would like to make portfolio rebalancing goals that set specific targets for Value, Growth, and Capitalization. (In reality there would be more funds; that would make a “solution” more likely than in this overly simple example.)

I don’t see how this might be done, but am hoping this is a question you have addressed before. I have the “Personal” version of the program.

Thanks as always

[Mark]

Hi Econdoc,

You can rebalance by asset type, but not sums of multiple asset types. For example, instead of:

Large Cap Value + Large Cap Growth = 60%
Small Cap Value + Small Cap Growth = 10%
Mid Cap Value + Mid Cap Growth = 30%

You could define your asset types as:

Large Cap
Small Cap
Mid Cap

and then use a Rebalance Report where you create an "Allocation Target" by Asset Type. If you don't use the standard asset types that you get when you retrieve asset type information you will have to manually assign your investments to your customized asset types. You don't have to retrieve asset type information, you can enter your own custom values. You could also use either Sector or Investment Goal categories. One idea might be to leave the standard Asset Types as retrieved, and then utilize Investment Goal to manually combine them in the ways you want. You can reference the asset type allocations when manually assigning your investment goals.

You might also like to watch this tutorial on categories.