Portfolio Reviews Matter

By Mark Barnicutt on April 11, 2011

To ensure a client’s investment portfolio continues to meet the objectives for which it was designed, HighView believes in regular reviews, typically quarterly, of three components: Goals Review, Portfolio Review & Policy Review.

1. Goals Review

At the outset of our engagement with a client, we will spend a great deal of time understanding the specific needs and goals they are expecting to achieve aligned against various time horizons. In addition, we will explore with them their past experiences with various forms of risk, how they planned for and reacted to it, and how those experiences have shaped their attitudes towards risk and uncertainty. These needs, goals and attitudes form the basis for how portfolios should be constructed and serve as the benchmark against which the portfolio results must be measured from time-to-time. As result, on at least a quarterly basis, we will validate each client’s goals and capture any changes to such goals.

2. Portfolio Review

A review of a client’s various goals-based portfolio structures, mandates and managers against their stated investment objectives & tolerances for risk, including topics such as:

–          Are the portfolios all accomplishing what was expected?

–          Are the short-term cash flow needs being met.

–          Do the various goals-based portfolios remain on-track to meet the medium and longer term goals and aspirations.

–          Are the portfolios behaving in a way that was anticipated.

3. Policy Review

On at least an annual basis HighView will review with the client any changes in their circumstances that would necessitate a change to their portfolio structure and Investment Policy Statement. Also, as each goal is aligned against specific time horizons, as the portfolios march through time, HighView will provide recommended adjustments to the portfolio to ensure it remains on track.

This Review approach helps to ensure that investment advisors remain in contact with their clients for the purpose of diligently pursuing their investment objectives.

Mark Barnicutt

As HighView’s President, CEO, and Co-Founder, Mark Barnicutt has thirty years of experience as a Bay Street executive and entrepreneur, with an expertise in the stewardship of family wealth as a mentor to both affluent families and wealth management businesses.
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