Asset Allocation
Your Asset Allocation, Explained
How your wealth is distributed across asset classes today, how that compares to your target allocation, and where the gaps are. The page you come to when you're thinking about rebalancing.
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Welcome
Asset allocation is one of the few portfolio decisions that compounds over long periods. Small drift can build into major concentration, unexpected risk, or an exposure mix that no longer matches your intent.
This guide focuses on the practical questions behind allocation: what do I really own, where have I drifted, and what should I rebalance or reclassify next.
This page becomes much more useful once you set target allocations. Without targets, drift is hard to judge because you have no baseline to compare against.
Reducing Uncategorized
The Uncategorized slice is one of the most actionable signals in the allocation workflow. It means some holdings have not been assigned to a usable asset class yet, so your allocation picture is incomplete.
Step 1 - Identify the uncategorized holdings
Review the uncategorized portion of the portfolio to see which positions still need classification.
Step 2 - Open each holding
Go to the underlying holding record and assign the correct asset class manually where needed.
Step 3 - Save and recheck allocation
Once the holdings are classified, allocation, deviation, and rebalancing views become more accurate immediately.
Most uncategorized positions tend to be manually added assets, private investments, unusual securities, or holdings that did not fit the default categorization logic cleanly.
Allocation vs Target
Allocation vs Target is the core rebalancing view. It compares what you currently hold against what you intended to hold.
- Current allocation - Your present exposure in each asset class, shown as a percentage and supported by the underlying dollar amount.
- Target allocation - The percentage you want that asset class to represent in the long run.
- Deviation - The gap between current and target. Negative means underweight. Positive means overweight.
This is the section that turns allocation from a passive snapshot into an actual decision-making tool.
How to use deviation
Deviation is the most operational number on the page because it tells you where action may be needed.
- Negative deviation - You are underweight the asset class relative to target. This may call for new purchases, redirected cash inflows, or reduced buying elsewhere.
- Positive deviation - You are overweight the asset class relative to target. This may call for trimming, redirecting new capital away from it, or intentionally accepting the drift.
- Widespread deviation - If many categories are materially off target, your allocation may have drifted enough to justify a broader review rather than a one-off trade.
Many investors use tolerance bands instead of constant rebalancing. A common rule is to act only when a category drifts by several percentage points rather than reacting to every minor move.
Common workflows
Initial target setup
Set a target percentage for every asset class you actually intend to hold, then confirm the full target mix adds up to 100%.
Quarterly rebalancing review
Check which asset classes are meaningfully above or below target and decide whether to rebalance now, redirect inflows, or accept the drift for strategic reasons.
Uncategorized cleanup
If uncategorized holdings become meaningful, classify them before using the allocation page to make real decisions.
Pre-liquidity-event check
Before a large purchase, sale, capital call, or inflow, review allocation so you understand how the event will change the portfolio mix.
Annual target reset
Review whether the targets themselves still reflect your goals, time horizon, risk tolerance, and liquidity needs.