Rebalancing in LUSID is the process of using portfolio valuation metrics and rebalancing algorithms to see how a portfolio could be brought in line with a target, then generating the orders needed for the portfolio to meet that target.
Once LUSID allocates and books executions as transactions in a portfolio, the transactions are used to generate holdings. LUSID then values your holdings, offering an abundance of valuation metrics. LUSID can use these valuation metrics to create more orders if you need to rebalance the portfolio, and automatically kick off the order lifecycle where necessary.
For example, as a Portfolio Manager you might hold 150 AAPL US equity shares with a market value of $25,000 in one of your portfolios but want to bring the target market value down to $0. You can rebalance your portfolio to create an order to sell 150 AAPL US equity shares. The order must pass a pre-trade compliance check, before being sent to a Trader for blocking, and so on.
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LUSID allows you to use a variety of rebalancing configurations and algorithms out-of-the-box, or create your own custom rebalancing algorithms, to customise portfolio rebalancing and subsequent order creation.
You can interact with LUSID's rebalancing tools using the LUSID web app, via Dashboard > Rebalance:
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