Portfolio rebalancing: the tolerance band at Norway's pension fund
For an owner or CFO who holds an investment reserve and cannot tell when to bring the mix back to plan. Norway's sovereign fund rebalances when its equity share drifts past a band. The manager's 2018 letter shows that band width is a cost question, not a forecast.
#portfolio-rebalancing#modern-portfolio-theory#transaction-costs#equity-risk-premium#sovereign-wealth-fund