Over time, as the shares in your portfolio deliver different returns, the size of each position within the portfolio can drift away from the target weighting.
This can result in an increase to your exposure to a company.
Rebalancing involves buying and selling assets in a portfolio so the assets in the portfolio reflect their target weighting.
In the case of the Spaceship Universe Portfolio and the Spaceship Index Portfolio, when new money comes into the fund, we buy shares that are under their target weighting moving the position in those companies towards their target weightings.
When required we can sell shares to meet withdrawal requirements.
When we do this, we check the weightings of all companies within the fund and sell shares with the view of moving the position in those companies towards their target weightings.
By doing this, the shares in the Spaceship Universe Portfolio and the Spaceship Index Portfolio are rebalanced toward their target weightings.
We also complete a full review of the portfolio every three months, so that the exposure to each company in a fund reflects its target weighting.