How to Read Investment Report | Breakaway Financial Group

How to Read the New Investment Performance Report

We are excited to announced that we have updated the Investment Report for our non-Altruist clients. Altruist clients will not see a change on their report.

The report still offers investment data at the Portfolio level and for each of the Planning Bucket (Short,Mid, and Long-term). If you are currently investing for goals within each of the buckets, you will see the same set of data four times. We feel it is important to provide detailed information as each of the planning buckets will have differences in the way the money is invested.

Activity Summary Page

The Activity Summary Page has three sub-reports:

The Account list provides information about which accounts are included in this portion of the report.
The Activity Summary provides details about the Beginning Value, Money added or subtracted, Market Changes, and Ending Value of the portfolio.
The Invested Value Comparison Chart offers a visual comparison between the money added over time to the value of the portfolio. The timeline of this sub-report shows data since inception of the portfolio.

Performance Summary Page

The Performance Summary Page has two sub-reports:

The Performance Comparison offers data about the performance of the portfolio for different periods. It also offers performance data for the assigned benchmark. The benchmark is assigned based on the portfolio risk profile. They are constituted of two different Vanguard funds (Total World Stock ETF (Ticker VT) and Total World Bond ETF (Ticker BNDW)) at different percentages.
The Performance vs Benchmark chart gives a visual representation of the same data for the reporting period.

Risk & Return Page

To give more perspective about performance, we also included the Risk & Return page. That page explains the relationship between risks taken by the portfolio and its performance. The goal is to maximize performance for each unit of risk taken. The Risk Summary Sub Report lists four different data points:

The Portfolio and Benchmark Performance for the period.
The Standard Deviation of the performance which provides volatility information.
Beta is a measure of the volatility of the portfolio compared to the market as a whole. A mark of 1 means that the portfolio was equally as volatile as the stock market.
Max Drawdown defines the largest drop the portfolio incurred during the period.

The Risk and Return chart illustrates the comparison of the performance and standard deviation for the portfolio using a plotchart. The goal is to be as close to the top left as possible.

Allocation Summary Page

We added the Allocation Summary page to gives a representation of how the portfolio changed over the reporting period. The Allocation Overview sub-report gives Allocation information to each of the Asset Categories within the portfolio while the Allocation Change Over Time displays how the portfolio was adjusted by our team during the period.

Appendix A: Performance Detail

Towards the end of the report, we added additional details about the portfolio. In the Appendix A: Performance Detail, we breakdown performance for each of the accounts and their assets.

Appendix B: Allocation Detail

The Appendix B: Allocation Detail gives information about the end of period allocation for each account and assets within those accounts.

Appendix C: Tax Summary

The Appendix C: Tax Summary details the different realized and unrealized tax data for the non-qualified accounts (non-retirement accounts).

Appendix D: Tax Details

The Appendix D: Tax Details digs deeper to provide important unrealized data for each products used within each account. We plan to use this data for possible tax planning opportunities.

Conclusion

We are proud of the work our team has done to improve our investment portfolio reporting. We believe that the report offers great insight to help improve your investment outcome.