Review/Rebalance Process


 I am trying to streamline our review process. We are an advisory firm with a CIP, with roughly 50% of our clients in a model portfolio and 50% in more bespoke (non-model)portfolios. Typically, clients will have their portfolios rebalanced on an annual basis. The process is currently:

  • Client Meeting, Update factfind, file notes etc.
  • Submit a request to our Investment Team to provide recommendations to rebalance the client’s portfolio.
  • Prepare a suitability letter giving details of the rebalance (recommended sales/purchases and reasons why). Typically around 9 pages long.
  • Issue letter to client for approval
  • Advise Investment Team to place trades once approval received
  • Send trade confirmation to client.

 Does this sound like a typical review process to you? I previously worked for a discretionary firm so the approach was obviously very different.

 Thanks for your views and any opinions.


  • Gustavo, 

    We send a summary of clients' latest current position and a ATR questionnaire ahead of the review meeting for the client to update. In that way by the time the adviser goes to see them we already know the clients ATR, and any significant changes to their position.

    The advisers take with them the recommendations for the clients appropriate portfolio to the review meeting; providing there is nothing else discussed during the review meeting that would change the client ATR profile, the client signs at the meeting the authority to proceed. 

    Our re-balanced/restructured report is very simple, 2 pg long :smile: 

  • JonaJona Member
    Similarly to @ElsaOrdonezG we have sign offs prepared ahead of the client meeting so adviser can get agreement then and there - which saves too-ing and fro-ing with paper.

    Equally the alteration to strategy report is a succinct as we can keep it.  We find most clients are not interested in the finer detail (nor understand it) - they prefer the big picture.
  • I just realised I haven't replied to this - very rude!
    Thanks both for your replies. We have shortened our letters somewhat now. The sections are essentially:
    Background/Objectives/Changes to circumstances
    Attitude to Risk
    Investment buy/sell tables
    Next Steps

    This is circa 2-3 pages with more detail in appendices.

  • I am a firm believer in the only benchmark or measure of success used should be  the clients benchmark, or how much closer the client is to achieving the stated goal.


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