Rebalancing my pension portfolio

k6chris

It's coming around to my (first) annual portfolio rebalance.   I want to get a sense check on the granularity of doing it.

Ignoring available cash, I have a planning target of 60% equities and 40% non equities

Of the 60% equities, 50% UK (FSTE 100 tracker, FSTE 250 tracker, a few FSTE 100 shares) + 50% non UK (Small cap europe fund, emerg market fund, global tracker)

Of the 40% non equities 80% in bond funds, 20% in property fund

I have also some new cash sitting in the account due to be allocated.

My question is, at what level of granularity should I be rebalancing?   Is it just to get back to the 60/40 split, should I be rebalancing the equities back to 50/50 UK non UK? Ditto for the bonds / property?   In reality, 60/40,  50/50 80/20 are arbitrary splits and were arrived at as they 'seemed about right'.  As much art as science!  

Thanks

dunstonh

My question is, at what level of granularity should I be rebalancing?  
It depends on your strategy.  If you are using a fluid sector allocation based on current economic data then the weightings for each sector will not be static.  So, you would rebalance to the latest weightings.
If your weightings are not really properly researched numbers you created, then it really doesnt matter too much if you bring it back to them or not.

should I be rebalancing the equities back to 50/50 UK non UK?
If that is what you have chosen to do then fair enough.

Ditto for the bonds / property? 
Your property weighting is high. most models have property very low at the moment.   For example, the highest weighting we have in any risk profile or timescale is 3% to property.  
Bonds need rebalancing too. Again, it will depend on your model strategy.