Pension funds Rebalancing date

[redharel]

Any idea when the rebalancing is taking place? i guess it is more then a single day as they have a lot of positions to change but is there any official date to this or it depends when the funds managers feels like it?

 

[Visaria]

what is pension funds rebalancing?

 

[tiddlywinks]

This post is just as much a questioning, as much as it is a comment on what I *think* to be true.

I'm not clear which pensions you are referring to, but fiscal years and therefore budgets for US, Federal, State, and municipalities are different. The US Federal government fiscal year begins/began October 1. About 80% of US States have a fiscal year which begins/began on July 1, and municipalities can differ from the home state, and even differ by department (fire, police, etc). Of course (public or private) corporate fiscal year-ends differ as well.

What I know for sure are the links between pensions at all levels of government, interest rates, and taxes.

 

[murray t turtle]

Any idea when the rebalancing is taking place? i guess it is more then a single day as they have a lot of positions to change but is there any official date to this or it depends when the funds managers feels like it?

%%
SEPT, but that was mostly bullish.
Below 200dma most of them have to sell, simply because so many painic [aka panic]sellers decided they did not want to be in stocks in a bear market.

 

[tommcginnis]

Any idea when the rebalancing is taking place? i guess it is more then a single day as they have a lot of positions to change but is there any official date to this or it depends when the funds managers feels like it?

As t-winks implied, it's a fiscal year thing -- but the key idea is that the rebalancing is *concluded* by that date. It could happen (*does* happen) all quarter long. (And longer!)

 

[Nighthawk]

Any idea when the rebalancing is taking place? i guess it is more then a single day as they have a lot of positions to change but is there any official date to this or it depends when the funds managers feels like it?

THis stuff is usually being done when some "benchmarks" have been hit or are under water. Pretty much stupid - as all "others" use the same benchmarks. Draw your own conclusions what this means for "Mr Equity Market".

On the other side, Warren Buffet has a hell of a time when these benchmark kids are being hit. That´s usually the time, when the Oracle starts to buy the cheap(er) stuff.

 

[tommcginnis]

THis stuff is usually being done when some "benchmarks" have been hit or are under water.

No. Rebalancing is needed when a fund's constituent parts are out-of-balance [!!] with its intended portfolio weights. This may happen because XYZ has fallen, or simply because ABC has climbed.