Your wealth and asset managers should regard your investment reviews as an important time to reassess the suitability of the portfolio, the information on which it is based and any changes to your objectives and financial position. With the proper systems and a well discipline service structure, this is not as complex or as time consuming as one might think. Updated financial needs are easily inputted into the systems that manage your assets and wealth and the touch of a button completes all the analysis.
The reviews provide the wealth manager with an opportunity to explain what has happened and why and, to illustrate the benefits of their strategy and approach. Again this is not a complex issue within a well structured and disciplined service process. As far as asset management is concerned, all security selection and asset allocation decisions are interrelated and all client portfolios, irrespective of their differences are related.
Importantly, the review process provides accountability to the individual investor of all decisions made. Many advisors will provide a quarterly report to the investor which will provide a valuation and a simple performance analysis and/or market commentary. This is not enough if your money is being managed to meet your financial needs over time. If your money is being managed properly, your wealth and asset manager should also provide you with three important components to your reports. An annual investment planning review where the ability of assets to meet financial needs are reassessed. This will be a much shorter version of the initial investment planning and portfolio management report. It will restate financial needs and objectives and adjust for any changes. It will also rework the financial modelling and should adjust financial objectives for recent annual inflation. The second reporting requirement relates to changes to investments within the portfolio due to changing relative valuations or security suitability and changes to asset allocation and securities due to a portfolio’s asset liability requirements. Where assets and needs are being managed, transactions will also be generated by changing asset liability relationships and not just market or security valuation and relative valuation. The third type of report is the performance analysis, which needs to compare the performance of the portfolio to a domestic index, to a comparable active benchmark and to comparable style benchmarks. Performance analysis needs to be after management expenses and transaction charges. Advanced performance analysis should also be able to measure the effectiveness of the asset allocation strategy in meeting financial demands on the portfolio. Good portfolio structure and good management of the relationship between financial needs and assets can actually enhance total return.
Other important factors involve transaction details and total transaction costs including commissions. 
| 
