Increase In Risk Exposure Due to Failure to Rebalance

Understanding Risk

May 4

Image source: Thomson Reuters Datastream, Vanguard

Asset allocation is the process of dividing your portfolio among different types of investments. Over time, the performance of different assets within your portfolio may vary, causing your portfolio to become unbalanced and potentially riskier than you intended. Research has shown that rebalanced portfolios are at significantly lower risk, typically at least 10% - 20%, compared to portfolios that are not rebalanced throughout the years.

Rebalancing your portfolio is essential because it allows the portfolio to be brought back to the asset allocation levels specified in your financial plan. Failure to rebalance can expose you to higher risk.

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Real Estate, Non-Accredited

NLI II

NET ASSET VALUE $31.6M
INVESTMENT MINIMUM $2,000
RISK CATEGORY Core
TARGET RETURN 18-20% IRR
INVESTMENT TERM 5-7 years

Real Estate, Accredited

NLI I Preferred

NET ASSET VALUE: $31.6M
INVESTMENT MINIMUM: $200,000
RISK CATEGORY: Core
TARGET RETURN: 18-20% IRR
INVESTMENT TERM: 5-7 years

Accredited, Fine Art

NFA.01

NET ASSET VALUE: $5.0MM
INVESTMENT MINIMUM: $500 (Reg CF); $25,000 (Reg D)
RISK CATEGORY: Growth
TARGET RETURN: 3x MOIC
INVESTMENT TERM: 3-5 years

NLI I Common

NET ASSET VALUE $31.6M
INVESTMENT MINIMUM $20,000
RISK CATEGORY Core
TARGET RETURN 18-20% IRR
INVESTMENT TERM 5-7 years

Increase In Risk Exposure Due to Failure to Rebalance

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