Insurance

Investment Portfolio Rebalancing

Selling bonds and buying equities to restore the target asset allocation.

Account NameTypeDebit ($)Credit ($)
Investment Securities — Equities (Purchased)Asset (+)1,000,000.00-
Investment Securities — Bonds (Sold)Asset (-)-980,000.00
Realized Gain on Bond SaleRevenue (+)-20,000.00

💡 Accountant's Note

Portfolio rebalancing maintains the insurer's target asset allocation (e.g., 60% bonds, 30% equity, 10% real estate). Rebalancing transactions trigger realized gains/losses on disposed assets.

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