Reporting and Rebalancing
Posted by admin on August 25, 2015
Reporting on your Portfolio’s Performance
When you retain Sensible Financial for investment management services, you grant us a limited power of attorney, so that we can receive electronic statements from your broker(s) and mutual fund company(ies), and trade on your behalf.
Sensible Financial reports on your portfolio’s performance and status (assets, anticipated risk and return versus your preference, etc.) periodically. Our clients can choose quarterly, semi-annual or annual reporting and rebalancing.
Whenever we report on your portfolio’s performance, we scan your holdings, and compare them to your preferred balance of risk and return. If the prices of equities or fixed income securities have changed a good deal, then your portfolio may have shifted in the direction of more anticipated risk than you wish, or toward a smaller expected return. We use New Frontier Advisor’s patented Rebalance Probability to perform this assessment. If the rebalancing probability is high, we will recommend that you restore balance to the portfolio.
If Sensible Financial finds that your portfolio’s balance of anticipated risk and return is significantly different than your plan requires, we will recommend specific trades to re-establish the appropriate anticipated risk and return. We will send you an e-mail or letter that lists the recommended trades and seeking your approval to carry them out. (Some clients choose to give us discretion – authorizing us to trade on their behalf without seeking explicit approval for every transaction).
Once you approve, Sensible Financial executes the trades and sends you a confirming letter or e-mail. You also receive trade confirmation directly from your broker(s) and/or mutual fund company(ies).