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What trades are required to rebalance the portfolio back to target? (6 marks) Previous Portfolio Asset Current Current Difference Actual ($m) Target Return Actual ($m)

What trades are required to rebalance the portfolio back to target? (6 marks)

Previous

Portfolio

Asset

Current

Current

Difference

Actual ($m)

Target

Return

Actual ($m)

Weight

To Target

Equities

70

70%

11%

77.70

71.28%

1.28%

Bonds

25

25%

5%

26.25

24.08%

-0.92%

Cash

5

5%

1%

5.05

4.63%

-0.37%

Total

100

100%

9%

109.00

100.00%

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