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Windsor, Ont.-based Sterling Mutuals Inc. has launched a portfolio rebalancing service that provides the benefit of automatic rebalancing on an investor’s preferred portfolio of funds.

“Automatic rebalancing programs are currently limited to operating within a specific mutual fund company lineup of funds,” explains Michael Stanley, president Sterling Mutuals, in a statement.

“The Sterling rebalancing service allows investors to maintain a desired portfolio mix of funds created from multiple fund company offerings.”

The program is designed to ease the administrative burden advisors face through manual portfolio rebalancing, Sterling says in a news release.

Theory, mechanics of rebalancing portfolios

Working with an advisor, investors select a preferred investment mix of funds and then decide on the maximum range the funds are permitted to fluctuate within the portfolio. A portfolio can then be automatically rebalanced on a quarterly, semi-annual or annual basis.

The rebalancing service is also available to other mutual fund dealers through either a technology licensing or carrying dealer arrangement.