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Rebalancing pays dividends

John Baron extols the virtues of some trusted investment disciplines, and adds to the portfolios' Chinese and Far Eastern holdings during last month's setback
September 4, 2015

August proved to be a period of two halves when it came to the Growth and Income portfolios. In the first, I reduced equity exposure when on tight discounts and added to the commercial property and fixed interest sectors.

During the second, following my knee osteotomy, I took advantage of the setback in equity markets and on 'Black Monday' added to my Chinese and Far Eastern holdings. The timing proved fortuitous. Furthermore, both periods of activity had the effect of generating more income.

Given the extent of portfolio activity relative to column space, I hope readers will forgive me if I cover the first half in this column, and then cover the second half in next month's column - when I will continue to suggest investors should buy Chinese and Far Eastern equities on bad days.

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