Portfolio Rebalancing Drift Review and Trade Approval Log

Inspection template for reviewing portfolio allocation drift against target bands and documenting approval of rebalancing trades to restore alignment with investment policy targets.

Review Context and Account Identification

• Account identifier recorded
  Record the account number or household identifier under review.
• Review date captured
  Document the date and time the drift review was performed.
• Model portfolio or policy benchmark identified
  Record the target model, IPS benchmark, or policy allocation used for comparison.
• Review scope confirmed
  Identify whether the review covers the full account, a sleeve, or a specific strategy.
• Source data timestamp verified
  Confirm the market data or holdings data timestamp used for the drift calculation.
• Review completed by qualified reviewer
  Enter the name or role of the reviewer completing the drift assessment.

Allocation Drift and Tolerance Check

• Equity allocation within tolerance band
  Enter the current equity allocation percentage and compare it to the target band.
• Fixed income allocation within tolerance band
  Enter the current fixed income allocation percentage and compare it to the target band.
• Cash allocation within tolerance band
  Enter the current cash allocation percentage and compare it to the target band.
• Alternative or other sleeve allocation within tolerance band
  Enter the current allocation percentage for alternatives or other non-core sleeves.
• Largest allocation drift quantified
  Record the largest absolute drift from target allocation across all sleeves.
• Tolerance band breach identified
  Indicate whether any sleeve exceeds the approved tolerance band.
• Drift review notes captured
  Summarize the observed drift drivers, such as market movement, cash flows, or corporate actions.

Rebalancing Need and Trade Determination

• Rebalancing required
  Confirm whether the account requires rebalancing based on policy, drift, or cash management rules.
• Trade type selected
  Select the intended trade approach for the rebalance.
• Proposed trade rationale documented
  Explain why the proposed trades restore target allocation or reduce risk drift.
• Tax or restriction review completed
  Confirm that tax constraints, trading restrictions, or client-specific limitations were reviewed before approval.
• Cash availability or proceeds sufficient
  Confirm available cash, sale proceeds, or contribution amounts are sufficient to execute the proposed rebalance.

Trade Approval and Authorization

• Trade approval status
  Document the approval outcome for the proposed rebalance.
• Approver name or role recorded
  Enter the name, title, or delegated authority of the person approving the trade.
• Approval timestamp captured
  Record when the trade approval was granted.
• Approval conditions documented
  List any conditions, limits, or follow-up actions required before execution.
• Client, committee, or discretionary authority confirmed
  Confirm the approval path matches the account authority structure and governing policy.

Execution Readiness and Sign-off

• Trade instructions prepared for execution
  Confirm the rebalance instructions are complete and ready for trading or order entry.
• Exceptions escalated where required
  Confirm any policy exceptions, restrictions, or unresolved drift issues were escalated to the appropriate authority.
• Corrective action or follow-up owner assigned
  Document the owner responsible for any follow-up action, correction, or deferred approval.
• Inspector signature
  Signature of the reviewer completing the drift review and approval log.