Root Ready How to Create Meaningful Conversations When Presenting Portfolio Performance to Clients
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Apr 2, 2025 Discover how advisors can turn tricky conversations about portfolio underperformance into trust-building moments. Learn to frame discussions around key questions regarding fund versus allocation issues. Get tips on comparing funds to appropriate benchmarks instead of the S&P 500. Understand how to use past performance to prepare clients for future market volatility, and why transparency is crucial. Also, explore the importance of asset allocation in meeting client goals, ensuring they feel supported during all market conditions.
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Address Underperformance Head-On
- Address client performance concerns directly instead of giving a long diversification lecture.
- Acknowledge feelings and avoid sidestepping the issue to preserve trust.
Lead With Performance Transparency
- Tell clients up front you will discuss performance to show awareness and build trust.
- Beat them to the topic so they know you won't avoid hard conversations.
Two-Cause Framework For Discrepancies
- Frame performance gaps as coming from either fund selection or asset allocation.
- This simplifies the problem and directs the analysis efficiently.