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Portfolio Construction

Conduct a portfolio review

Reviewed onNovember 25, 2024

3 MIN ARTICLE

Portfolio reviews provide an opportunity to discuss changes in your clients’ goals or to prepare them for retirement. Follow this four-step process to help make your meetings both productive and meaningful.

 

Step 1

Acknowledge needs and objectives

How to do it:

  • Prepare for your meeting by identifying key milestones or events that have happened since you last met.
  • Review client portfolios to determine if they’re well positioned to meet their investment goals.
  • For clients who are nearing retirement, identify their priorities, assets and liabilities, expenses, and income sources.

Step 2

Provide a comprehensive long-term perspective

How to do it:

  • Share in-depth analysis from our investment professionals on current markets and the economic environment, as well as insight into core investment topics.
  • Review key statistics and commentary for individual funds and share classes.
  • Help retirees understand the shifting focus in retirement investing from accumulating assets to taking distributions. Ascertain their financial outlook to determine whether they should seek investments weighted more toward preservation of capital, a balance of income and appreciation, or growth.

 

Resource to use:
Capital Ideas — Market perspectives and fund commentary from Capital Group investment professionals

Step 3

Establish confidence

How to do it:

  • Offer strategies that can help clients pursue their long-term goals.
  • For clients who are nearing retirement, determine an investment mix and withdrawal rate that can help address longevity risk.
  • Reassure clients about their investment decisions.

Step 4

Discuss opportunities

How to do it:

  • End your conversation by recommending sensible investment choices that will help clients meet their long-term goals or fund their retirement income needs.
  • Construct portfolios for your clients and test them over the long term.

Supporting materials

4-step client review worksheet (PDF) (PDF, 2.5 MB)
Portfolio Analyzer
Fund details
Quarterly statistical update (PDF, 2.5 MB)

Related content

Portfolio Construction
Help your clients understand the importance of long-term investing
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