When you invest with Octopus Money, our team continually monitors and looks after your investment portfolios for you. It means you can enjoy life, and not have to worry about the daily movements of the markets.
Every 3 months, we’ll rebalance your portfolio to ensure it has its intended mix of shares, bonds and other assets. It’s all about keeping your money on the right path, for the long term. There’s nothing you need to do – and you’ll always be able to see these adjustments in the Transactions section of your portal.
More on rebalancing
- Your investment portfolio is made up of a number of different funds, which have been carefully selected by our experts.
- Each of these funds are made up of investments from different parts of the world or industries. This is intentional, as it gives your investments diversification (in other words, not having all of your eggs in one basket).
- Over time, movements in the market mean that the different funds will rise and fall at different rates. This means the amounts held in each fund will change over time. (For example, you may have too many eggs in one basket.)
- To rebalance your portfolio, we may sell and buy funds to bring your portfolio back in line with its intended strategy.
- If you have a GIA: rebalancing your portfolio may involve selling some funds, which could create a Capital Gains Tax liability. You’ll receive a summary of this in your annual tax statement from us.
- With any investment your capital is at risk – investments can go down as well as up.
Other questions
Will you let me know when a rebalance is happening?
Yes, you'll get an email from us when a rebalance is scheduled to happen. You'll also be able to see a record of any changes to your portfolio in the Transactions section of your portal.
How soon will I see the changes?
Rebalancing involves buying and selling funds in your portfolio, so sometimes these transactions take a few days to "settle" in your account.
What if I don’t want my portfolio to be rebalanced?
As your investment manager, we will always make decisions that we believe are in your best interests. Because we take responsibility for managing your investments (unlike other services in the market where you have to make all the decisions yourself), it is not possible to "opt out" of rebalancing. The decisions we make impact our portfolios, so any clients invested in those portfolios will be impacted.
I have multiple investing accounts, will this impact all of them?
Yes, we will be rebalancing all portfolios across all accounts.
When will I get a new factsheet?
You can always download your portfolio factsheet in your portal. The factsheets will be updated and be available at the end of the month the rebalancing takes place.