And How Would You Like That Performance Reported, Sir?


How’s My Performance?

Justin here. This is a mock-up of something a retired investment advisor and friend of mine said he would put in front of clients. It is only halfway “tongue in cheek” and it brings up a good point about what is important and why. 

Client Reporting Process Selection


Our intent is to provide you with the most efficient report on your investment account possible. To that end, we ask you to look over the format you would be most comfortable with and check the appropriate section and return it to us.  We will do our best to keep you informed.


1.  Please let me know how my account is doing as compared with CDs and ten year Treasury Notes. (CDs are now returning about 2% to 3% per year and ten year Treasury Notes are at 2%)


2.  Please let me know how my account is doing according to the popularly used averages, Dow Jones Average, Standard and Poor Average, etc. (This program shows if your account performed as average or if it was better or worse than average.)


3.   Please let me know how my account was doing according to the Hedge Funds strategy. (A recent report in The Economist  stated “At the end of 2011, 67% of hedge funds were below their high water marks, according to Credit Suisse, and 13% had not earned a performance fee since 2007…..the average hedge fund slid by 5.2%, much worse than the S & P 500which returned 2%.)


4.  Please let me know how my account performed percentage wise during the period. (Percentages are useful to reveal how much your account moved up or down during the period.


5.   Please let me know how much my account performed in real dollar value during the period. (For instance, we can report your account grew $ 36,000 during the period or $3,000 per month.  This might effectively assist you in your spending plans.)


6.  Please let me know how well my account performed versus inflation. (Inflation varies but is commonly accepted as approximately 3% per year.


7.  Please let me know how my account performed compared with the goal we mutually set as a guide line to work toward.  I understand the account may not move up in an equal amount each year but strives to reach our goal within in a six year period.  


Thank you for being a part of this investment program.  We want you to be comfortable with our services.  Call us at any time you have a question.

I’d only add another: “#8. Please let me know how my performance was compared to a) my brother in law b) that guy I saw on CNBC this morning c) my tennis partner.

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s