Quarterly Performance Reports: A Clear Look at Your Investment Journey
As we close out the first quarter and prepare to share your Q1 performance, we at Alaska Wealth Advisors understand the importance of keeping your financial goals at the forefront of everything we do. Quarterly Performance Reports (QPR) are one way that we communicate how your plan is doing. In light of this, we wanted to highlight a few aspects of the report and why this part of our process matters to you.
- Clear and transparent reporting is key to developing and maintaining trust. Our report aims to present your investment that is accessible and provides you with a comprehensive snapshot of your portfolio’s activity. We categorize your holdings based on the asset class to provide a clear picture of how we’ve invested the funds you’ve entrusted to us. Performance is shown against benchmarks to provide context for how your account has returned.
- Industry best practices are front and center for calculating your investment performance. Our top-of-the-line performance reporting software, Orion, was developed to adhere to Global Investment Performance Standards(GIPS)[1].
As such, time-weighted return, net of all fees, is utilized to calculate the performance of your assets. Time-weighted return removes the impact of deposits and withdrawals, to provide a clear picture of how our investment management has performed. Investors gain valuable insights into the efficacy of the fund manager’s investment strategy, devoid of the influence of external cash movements, which allows for comparable evaluation of various strategies.
- Performance is certainly a significant metric, but this is only one way that we measure investment success. Ultimately, you’ve invested funds for a purpose, and we evaluate our effectiveness as our ability to navigate through various markets while keeping your plan on track. While the numbers are an important indicator of how the investments are performing along your financial journey, know that our team is constantly monitoring your portfolio in the context of your overall goals to focus on the highest probability of meeting those financial objectives.
Your team is always available to answer any questions you may have regarding your QPR or any other aspect of your investments. In the meantime, happy reading!
Vlad Finko
Associate Financial Advisor
Alaska Wealth Advisors, LLC is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Alaska Wealth Advisors’ investment advisory services can be found in its Form ADV Part 2 and/or Form CRS, both of which are available upon request. Material presented has been derived from sources considered to be reliable, but accuracy and completeness cannot be guaranteed.
[1] Alaska Wealth Advisors does not claim compliance with Global Investment Performance Standards (GIPS).
