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Percent Variance
Percent Variance is the sum of the absolute value of the difference between the target asset allocation and the actual (current) asset allocation.
Percent Variance = | Category Actual Weight - Target Weight |
Actual: 67%
Target: 60%
Equity deviation: | 67% - 60% | = 7%
Actual: 29%
Target: 40%
Fixed Income deviation: | 29% - 40% | = 11%
Deviated 4% under overall target
Total Percent Variance: 7% + 11%= 18% deviated