Regular investment performance reviews are essential for ensuring that your investment strategy is on track to meet your financial goals. Whether you’re working with an investment manager or managing your own portfolio, here’s what to expect from a performance review and how to prepare:
What to Expect:
- Performance Summary: Your investment manager or advisor will provide a detailed summary of your portfolio’s performance over a specific period, usually quarterly or annually.
- Benchmark Comparison: Your portfolio’s performance will be compared to relevant benchmarks to gauge its relative success.
- Attribution Analysis: This helps you understand what factors contributed to your portfolio’s performance, whether it was specific investments, asset allocation, or market conditions.
- Discussion of Strategy: You’ll have the opportunity to discuss your current investment strategy, any changes in your financial situation, and potential adjustments to your portfolio.
How to Prepare:
- Review Your Investment Policy Statement: This document outlines your investment goals, risk tolerance, and asset allocation. Make sure it’s still relevant and up-to-date.
- Gather Your Questions: Think about any concerns or questions you have regarding your portfolio’s performance, fees, or strategy.
- Be Open to Feedback: A performance review is a two-way conversation. Be open to feedback and suggestions from your investment manager or advisor.
Remember:
A performance review is not just about looking at numbers. It’s an opportunity to assess whether your investment strategy is still aligned with your goals and to make any necessary adjustments.
