Hi - first time poster. I think I have scrubbed many postings on evaluating financial advisors but still have questions. Sorry if there are answers searching did not take me to.
Can you help decipher this response I got from them when I asked about a benchmark to compare my portfolio against?
The comparison benchmark ("Bench") used in this report is based upon the model configuration and is held static throughout the analysis period. The target weights are determined by rounding the hypothetical historical average equity allocation to the nearest 5%, adding alternatives, if applicable, in the same proportion as defined by a sleeve, and any remaining allocation goes to fixed income. It is comprised of index-following mutual funds and/or ETFs that are rebalanced monthly to their respective target weights. The equity portion of the benchmark is comprised of 75% US and 25% international, currently represented by VTI and VEU, respectively. The fixed income portion of the benchmark is comprised of 100% US, currently represented by BND. If applicable, the alternative portion of the benchmark is comprised of a multi-strategy fund, currently represented by QAI.
Unfortunately, due to regulatory requirements, I cannot provide a comparison of the model to a benchmark, as that's not allowed, because each clients entry point is different.
Are they saying they can't (won't) give me a benchmark return to compare my personal return against? I get the impression they are saying it would not be an apples to apples comparison. Is that "normal" and I should build my own benchmark based on my current allocations? Thanks!
Can you help decipher this response I got from them when I asked about a benchmark to compare my portfolio against?
The comparison benchmark ("Bench") used in this report is based upon the model configuration and is held static throughout the analysis period. The target weights are determined by rounding the hypothetical historical average equity allocation to the nearest 5%, adding alternatives, if applicable, in the same proportion as defined by a sleeve, and any remaining allocation goes to fixed income. It is comprised of index-following mutual funds and/or ETFs that are rebalanced monthly to their respective target weights. The equity portion of the benchmark is comprised of 75% US and 25% international, currently represented by VTI and VEU, respectively. The fixed income portion of the benchmark is comprised of 100% US, currently represented by BND. If applicable, the alternative portion of the benchmark is comprised of a multi-strategy fund, currently represented by QAI.
Unfortunately, due to regulatory requirements, I cannot provide a comparison of the model to a benchmark, as that's not allowed, because each clients entry point is different.
Are they saying they can't (won't) give me a benchmark return to compare my personal return against? I get the impression they are saying it would not be an apples to apples comparison. Is that "normal" and I should build my own benchmark based on my current allocations? Thanks!
Statistics: Posted by AtomicPunk — Fri Dec 13, 2024 9:52 am — Replies 3 — Views 82