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 ...