Performance Attribution

Right Investments For the Right Accounts

Statement analysis examines the investment mix and asset allocation of a client’s existing holdings, and identifies areas that may conflict with their investment objectives and constraints. We review the client’s overall holdings for misplaced securities (e.g. municipals in IRA, Mutual funds share classes, annuity CDSC that conflict with liquidity constraints, etc…), conduct portfolio risk analysis, diversification and portfolio drift assessments, tax efficiency in trading and performance attribution.

 

Investment Account and Statement Analysis

Statement analysis is used to examine the advisor’s overall understanding of the client’s objectives and recognize the most suitable investment for the client’s given situation.  The ability to sift through a myriad of financial instruments and determine the applicability of an investment’s risk and return characteristics is an implied qualification of an advisor. 

 

Analyze Your Advisor's Recommendations

Through statement analysis, we can quantify the advisor’s investment philosophy and process, and gain insight to the parameters used to gauge an investment’s suitability. Product knowledge is indirectly examined here, as there are often alternatives that provide lower transaction costs through synthetic portfolio exposure, or tax lot selling, etc… By reviewing the client’s statements and trading history, we can shed light on the advisor’s overall awareness and understanding of investment products, and non market factors that impact total portfolio performance.

 

Are your Returns from Your Advisor or the Markets?

Performance attribution is conducted relative to specific market or absolute benchmarks, and quantifies the advisor’s value added to portfolio returns. The attribution report segments portfolio performance, and identifies the various sources that contributed to total investment returns. A portfolio that consistently underperforms its benchmark due to high active management fees, may realize better net returns though passive exposure such as ETF’s. Likewise, a portfolio with a strong track record for outperforming its benchmark will highlight the advisor’s ability to select superior investments, and validate the service provided.

 

To learn more about Advisor Analyzer Services please give us a call at: 646-434-5497 or email us at: services@advisoranalyzer.com