1. Conducting a Quarterly Portfolio Review MACS 583

2. Client Retention LACK OF COMMUNICATION FOUR TIMES PER YEAR
One reason a high net worth individual fires a financial advisor1:
LACK OF COMMUNICATION
Number of times high net worth individuals expect to meet with their financial advisors2:
FOUR TIMES PER YEAR
Sources:1 Wall Street Journal: August 13, “Higher Fees Follow Highly Effective Meetings,” horsesmouth.com: June 18, 2001

3. The Managed Account Consulting Process
Client
Objective
Asset
Allocation
Portfolio
Review
Financial Advisor
Manager
Search & Selection

4. The Written Agenda Objective Review - Investment Policy Statement
Investment Review - Asset Allocation and Style Diversification
Services Review - Adding Value
Benefits – Sales Opportunity

5. Objective Review Lifestyle – Has anything changed?
Growth - How much is enough?
Income - Cash flow needs for preferred lifestyle?
Legacy Planning – Distribution?
Legal Liability and Tax Efficiency - Preserving earned wealth?

6. Investment Review
Portfolio Holdings – Need for investment manager teleconference?
Performance Data – Appropriate benchmark? Client comprehension?
Asset Allocation - Rebalance? Redirect?
Manager Selection – Reasons for hiring?
Time – Reporting time frame versus client time horizon? Long-term objectives?

7. Services Review Ongoing communication
Access to and due diligence of investment managers
Consulting and tax management
Portfolio construction and review
Family wealth management

8. Benefits: QR as Sales Opportunity
Develop influence in relationship
Gain greater percentage of client’s assets
Rebalance with new money
Referrals

9. Review Advantages Reflects preparation and planning
Demonstrates professionalism
Personalizes meeting
Provides documentation for review
Evaluates rationale behind manager selection

10. Benefits of a Quarterly Review
Communication medium
Educational platform
Retention tool
Relationship builder
Sales opportunity