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07. Create a client report – portfolio performance

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Here is the step-by-step procedure for producing and interpreting the portfolio performance report in VieFund, respecting your formatting preferences.

Objective

Generate an in-depth analysis of investment performance, including the comparison between book cost and market value, as well as full transparency on fees and compensation.

Prerequisites

  • Access to the client file in VieFund.
  • Selection of the desired scan period.

Step 1: Generate and read the basic data

  1. Select the Portfolio Performance report  and choose your time period.
  2. Summary of Movements: Check the opening value, deposits made, net investment and reinvested distributions.
  3. Performance periods: View performance over various time horizons: 1 month, 3 months, 6 months, 1 year, or since account creation.

Step 2: Graphical analysis of the evolution

The report offers a key visualization to distinguish real growth:

  • Accounting cost curve (solid line with jumps): Represents the capital actually disbursed by the client to buy their assets. It varies only when making purchases or withdrawals.
  • Market Value Line (Variable Line): Represents the current value in different markets.
  • Indicator of success: If the market value is higher than the book cost, the investment will generate a gain.

Step 3: Retrospective analysis and allocation

  1. Breakdown by account and institution: The report breaks down assets by plan (RRSP, RESP, TFSA) and by institution (e.g., segregated funds at Assumption), while tracing the history of transfers and movements of funds.
  2. Monthly summary table: Use this table to analyze the evolution month by month, quarter by quarter and year by year (e.g. identify an annual return of 13.08%).
  3. Asset allocation: See the breakdown by capital and income types (usually calculated over the last 90 days).

Step 4: Fee Transparency and Compensation

This section is crucial for answering customer questions about costs:

  • Direct and indirect costs: Identify dollar amounts paid for account operation, purchases, and sales.
  • Advisor compensation: The report details what is paid to you, including trailing commissions, upfront or deferred sales charges.
  • Ratio analysis: To help the client put things into perspective, relate the amount of the costs to the gain realized.
    • Example: A fee of $3,268 can represent 1.53% of the management expense ratio if the total gain is 15.7%.

Step 5: Finalization

  1. Use this document for your annual review meetings.
  2. Recording: Save the PDF so that you can send it to the client if they request a specific detail of their fees or historical performance.

💡 Practical tip: Presenting the percentage fee (ratio) is often more meaningful and less intimidating for the client than only displaying a large dollar amount, especially when the gross performance is strong.