Portfolio Construction

Conduct a portfolio review

Published onOctober 23, 2020

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.

KEY TAKEAWAYS

  • Acknowledge needs and objectives
  • Provide a comprehensive long-term perspective
  • Establish confidence
  • Discuss opportunities

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)
American Funds 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
Year-end portfolio and tax planning
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
This material does not constitute legal or tax advice. Investors should consult with their legal or tax advisors.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only. Use of this website and materials is also subject to approval by your home office.
Effective July 1, 2024, American Funds Distributors, Inc. was renamed Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.