O'Reilly logo

Family Wealth Management: Seven Imperatives for Successful Investing in the New World Order by Tom McCullough, Mark Haynes Daniell

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 20

Monitoring Performance against Internal Goals and External Benchmarks

One of the most important elements of a high-quality approach to wealth management is a clear, accurate, and usable set of performance reports. These tools, which measure progress against the plan, can help to keep the family and its advisors on top of developments in the market and understand how they will affect the portfolio and the family’s long-term goals.

Typically once a month, and in greater detail each quarter, the family should receive a summary report of its net worth and investment performance by asset class, manager, and individual investment, although many investments such as private equity funds may not provide any meaningful information on less than a quarterly or even an annual basis.

Accurate information can perform many valuable functions: it can guide the review and adjustments of asset allocation, inform specific investment decisions, and highlight the accumulation of risks and costs on a total portfolio basis. Most important, high-quality reporting and control can make a substantial contribution to the achievement of overall investment objectives. With accurate and timely information, wealth managers will be far more able to make the right decisions to keep a portfolio of investments on track to long-term goal achievement.

Family investors, the family office (FO) or the chief investment officer (CIO), and other decision makers will require detailed reporting to facilitate decision ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required