My rebalancing strategy involves not selling off any securities but buying more of asset classes with current allocation lower than the target allocation. For eg, if I have $20000 cash in a Deposit Account, I only want to use those $20000 to rebalance. I do not want to sell anything.
Is there any way I can do this with PP?
Yes, you need to include that deposit account in the classification and set the target allocation for it to zero.
Hey, thanks for the response.
Thatâs what I did but some asset classes (for which actual allocation is greater than the target) have positive delta value. This affects delta values of other asset classes with negative delta values (right now, sum of negative delta values â cash in deposit account). What I want is only negative and zero delta values.
Let me know if youâd like me to explain further/better. Thanks again.
positiv delta values means you ought to sell shares, right?
my guess would be, that the amount of fresh cash is too small to balance your portfolio fully. My first thought for a workaround is, that you increase the amount of fresh cash until the positiv delta values disappear. Then you take the percentage allocation and distribute your money accordingly.
Wait for the next release. Youâll be able to manually exclude securities from the rebalancing. You would then need to deselect all securities that require selling.
Hi, seems like the new version is out. How to exclude securities from rebalancing? Thanks a lot!
There is a new column that youâll need to add. You can then toggle the flag via double-click.
It works like a charm, thank you!
what do you mean by âin the classificationâ?
Not âuncategorizedâ.
could you provide an example? Iâm not following how to get this rebalancing properly
edit: why is the forum not showing the quote to the post Iâm replying to?
This is done by highlighting the reffered text and selecting the shown tooltip âquoteâ. Otherwise youâre just referring to a post.
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To get the rebalancing as intended, you need to maintain the taxonomie as desired:
Seems Iâm doing something wrong here. I have a couple of ETFs divided in taxonomies as USA and ex-USA. I want a 65/35 split between these. Currently the USA one says delta value -1900, so I thought I had to buy 1900 usd worth of USA etfs to have proper rebalance. I simulated this purchase up to 1800, but the delta changed to -1100. What am I doing wrong?
Hi all.
Sorry to bring back an old thread, but itâs the best match I could find in English after searching around.
Iâm trying to do exactly what the original poster was asking for: calculate the required rebalancing by adding a cash (deposit) account to the taxonomy, then setting its target weight to 0%. However something seems to be off.
For some reason, the deposit account that I added shows up as having a current value of 0âŹ, even though it does have money that shows up correctly in the other screens:
As a result, even though Iâve checked the âUsed for rebalancingâ flag on the deposit account, PP still calculates the rebalancing only by using the funds in my portfolio.
What am I doing wrong here?
Try the other side round, specify the category weight and not the allocation within each category. The allocation within each category just describe. For example, MSCI WORD w/ a weight of 10% and an allocation of 100% of the according security should achieve your requirement.
Thanks for your response, although Iâm not sure Iâm following. The allocation must be specified for all categories and subcategories. I canât leave it blank, or else I get an error.
Furthermore, itâs working as intended for both the equity and the fixed income categories. Itâs only the cash category thatâs failing.
In the case of equity, thereâs two subcategories with a 90/10 split, but I donât think thatâs relevant to my problem since that part works just fine.
My problem is that the ânew cashâ deposit account shows up as having 0 EUR in this screen, even though its balance is non-zero. As a result, itâs not counted towards the rebalancing calculation.
I hope this screenshot makes the problem clearer:
If I try giving the cash account any other target allocation different from 0%, such as 10%, PP suggests that I move 10% of my index funds to the deposit account⌠again assuming that the deposit account is empty, even though itâs not.
Any idea of why PP thinks the deposit account is empty only in this screen?
Edit: Searching through the German forum, I found a screenshot where the rebalancing tool is working exactly the way I want:
https://forum.portfolio-performance.info/uploads/default/original/2X/4/4dc3433e4e65df95018310efe7b975f0dc0b72ec.png
The post is over a year old though (March '23).
Could this perhaps be a recent bug in the current version of Portfolio Performance?
Nevermind, I found the issue!
In the asset allocation screen, Iâm applying a filter to show only one of my portfolios (the only one I want to rebalance right now).
However, I had forgotten a small detail:
In order for the deposit account to be counted towards the allocation of that portfolio, the deposit account must also be added to the filter youâre using!
Otherwise, even if you are seeing the asset (the deposit account in this case) in the asset allocation view, PP counts it as having zero balance, because the applied filter doesnât include that asset.
Once I added it to the filter for my account and re-applied the filter in the asset allocation screen, its balance finally appeared and the rebalancing was calculated correctly.
Hope this helps anybody who stumbles upon this issue in the future!
