We look at the portfolio return and compare it with its stated investment objectives. In addition, we look at the percentage of the portfolio’s growth attributable to investment earnings. The value of a portfolio can change for many reasons; among these are distributions, the receipt of interest and dividend payments and the changing market value of the securities held in the account.
We evaluate and monitor each of the clients’ portfolio manager’s investment results. This comparison includes each managers total portfolio performance relative to the manager’s specific indices and its peer group.
Through this performance evaluation reporting we are able to gain confidence that the managers are adhering to their stated objectives. If we determine the manager has deviated from their investment strategy we will meet with them and determine how their new strategy may or may not correlate with the existing managers. If they do not they are terminated, otherwise a careful and thorough analysis is followed.