Top 10 Reports Our Clients Are Using Right Now
Understanding how to evaluate your portfolio and make informed decisions requires access to the right tools. Below, we highlight the top 10 reports that our clients rely on, from evaluating manager performance to understanding asset allocations. Each report provides critical insights into different aspects of investment strategy and risk management.
1. Manager Evaluation
What it is:
This report evaluates investment managers by comparing their performance across multiple time horizons (quarterly, year-to-date, and multi-year). Key metrics include account returns, beta, Sharpe ratio, and information ratio, bench marked against indices like the S&P/TSX 60.
How it’s used:
Clients use this report to assess the consistency and risk-adjusted performance of their managers. It helps them identify if the manager’s active return justifies their fees and how well their portfolio aligns with long-term objectives, including ESG criteria. The risk metrics section also provides insight into sector exposure, allowing clients to evaluate diversification.
2. Rate of Return vs Benchmark
What it is:
This report compares the portfolio’s performance against relevant benchmarks over different time horizons (3 months, 6 months, year-to-date, etc.). It provides a breakdown of returns by asset class and highlights active return—how much the portfolio’s performance differs from the benchmark.
How it’s used:
Clients use this report to assess whether their portfolio is outperforming or under performing relative to the market. By comparing the portfolio to benchmarks such as the S&P/TSX, MSCI All Country World Index, or bond indices, clients can evaluate the effectiveness of their investment strategy and therefore they can identify areas where active management adds value.
3. Target Allocation vs Current Allocation
What it is:
This report compares the client’s current asset allocation to the target allocation set by their investment policy. It highlights any deviations and shows where the portfolio might need adjustments to remain aligned with long-term goals.
How its used:
Clients rely on this report to determine whether rebalancing is necessary to manage risk and maintain alignment with their investment strategy.
4. Investment Policy Asset Allocation
What it is:
This report outlines the asset allocation guidelines as specified in the client’s investment policy. It provides minimum, benchmark, and maximum allocation percentages for each asset class, including fixed income, equity, and real assets.
How it’s used:
Clients use this report to ensure their portfolio stays within the specified allocation limits. It’s a key tool for maintaining discipline in portfolio management, helping to mitigate risk by ensuring that no single asset class is over- or underrepresented.
5. Sector Allocation
What it is:
This report breaks down the portfolio’s exposure to various sectors including financial, information technology, utilities, and more. It compares the portfolio’s sector allocations to relevant benchmarks to assess whether the portfolio is over- or under-weighted in specific sectors.
How it’s used:
Clients use this report to manage sector risk and ensure their portfolio remains diversified. Overexposure to a single sector could increase risk meanwhile underexposure might lead to missed opportunities. Comparing sector allocations to benchmarks helps clients understand their portfolio’s positioning relative to the broader market.
6. Cash & Accounts
What it is:
This report offers a detailed breakdown of cash balances across various accounts. It highlights the percentage of the portfolio held in cash, specifying amounts in both Canadian and U.S. dollars, and includes balances in individual accounts such as RSP, TFSA, and investment savings accounts.
How it’s used:
Clients use this report to assess liquidity and ensure there is enough cash available to cover short-term expenses, reinvestment opportunities, or unexpected liabilities. This report is especially useful for managing cash flow and identifying where funds are held.
7. Income Projection
What it is:
This report provides a projection of the portfolio’s income for the upcoming year, including dividends and other cash flows from stocks and bonds. It lists individual securities and their expected contributions to the total projected income.
How it’s used:
Clients use this report to plan for future cash flow, ensuring that income from their portfolio is sufficient to cover ongoing expenses or reinvestment strategies. It helps assess the stability and reliability of income-generating assets within the portfolio.
8. ESG Scoring
What it is:
This report assesses the Environmental, Social, and Governance (ESG) scores of the portfolio’s holdings, providing insight into metrics such as carbon intensity, water usage, and overall ESG performance. The scale rates the scores from 1 to 5, with higher scores indicating better alignment with ESG principles.
How it’s used:
Clients use this report to evaluate how well their investments align with their sustainability goals. It pinpoints areas where the portfolio is overexposed to companies with high environmental and/or social risks. Additionally, it supports decision-making around responsible investing strategies.
9. Private Equity Evaluation
What it is:
This report evaluates the performance of private equity investments by detailing fund commitments, contributions, distributions, and internal rate of return (IRR). Moreover, it provides both total and annualized IRRs for each fund, along with information on unfunded commitments.
How it’s used:
Clients use this report to assess the performance of their private equity investments and understand how these investments are contributing to their overall portfolio. It highlights the effectiveness of private equity strategies and provides insight into cash flows, returns, and risk management within these alternative investments.
10. Visualizations
What it is:
This report uses various visualizations, this includes line charts and bar charts, to represent portfolio performance, risk vs return, and asset class comparisons. These charts help illustrate the relationship between portfolio returns and benchmark performance over time.
How it’s used:
Clients use these visualizations to quickly understand trends in portfolio performance, compare returns against benchmarks, and evaluate risk. Visual data allows for a more intuitive understanding of portfolio strengths and areas for improvement.
One-Page and Quarterly Reports
When it comes to our top 10 reports, think of them as different sections that work together to give you a complete picture of your portfolio. Each section—from manager evaluation to ESG scoring—provides unique insights into your investments. You can customize and combine these into a single, comprehensive report—whether it’s a detailed quarterly review or a one-page snapshot—ensuring you always have the information needed to make informed decisions.
Leave a Reply