{"id":5865,"date":"2018-01-31T14:39:58","date_gmt":"2018-01-31T13:39:58","guid":{"rendered":"https:\/\/finguide.d4dcloud.com\/are-you-satisfied-with-the-performance\/"},"modified":"2026-10-29T16:39:22","modified_gmt":"2026-10-29T15:39:22","slug":"are-you-satisfied-with-the-performance","status":"publish","type":"post","link":"https:\/\/www.finguide.ch\/en\/knowledge\/are-you-satisfied-with-the-performance\/","title":{"rendered":"Are You Satisfied With the Performance?"},"content":{"rendered":"\t\t
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At the beginning of each year, we receive our portfolio statements, which show us how our investments have performed. Most of us take note of the values and leave it at that. But haven\u2019t you ever wondered whether the returns you have achieved are really good? Whether and how you could have achieved a higher performance? In this article, we want to explore this topic further.<\/p>

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Assessing Performance<\/h2>

The first task is to be able to make a rigorous assessment of the return achieved. This requires some effort, but it is doable. Hopefully you are pursuing a clear investment strategy. How is it defined? Most investment strategies can be categorized on the basis of equity exposure: from income strategies (no or almost no equity exposure) to dynamic strategies (80-100% equity exposure). There are also wealth managers with whom you do not agree to a specific equity allocation, but rather a individual risk profile that is implemented with various asset classes based on opportunities and which target specified returns.<\/p>

A good comparison of performance compares apples with apples and pears with pears wherever possible. So if you want to categorize your returns properly, you need to apply the correct benchmark. For example, if your money is invested in a \u201cbalanced\u201d strategy, compared it to such strategies. As you know, hardly any providers publicize the returns they have achieved. Notwithstanding this there is a good alternative: wealth management funds. In the case mentioned above, look for \u201cbalanced\u201d wealth management funds (also known as mixed funds, strategy funds or portfolio funds) that work with similar guidelines to yours or your wealth manager. It is best to take 3-4 funds and average them out. Admittedly, the search for suitable investment funds from the thousands on offer is tedious. But once you have done the work once, you can use the same funds every year.<\/p>

To be able to make a accurate comparison, you also need to consider the costs. If you want to compare your own return after deducting all costs, don\u2019t forget to include the custody account fee for the investment funds. In addition, distributions must be taken into account; depending on whether your interest and dividends are included in your return figures or not, you must select accumulating or distributing investment funds as a comparative figure.<\/p>

Once you have compared your returns with the competing products, it\u2019s time to interpret them. If your performance is comparatively better, you will probably leave it at that and sit back and relax. If your performance is worse, you will want to know why. There are almost infinite possibilities for this. It could be due to the geographical or currency composition of your securities, the proportion of equities, the average remaining term of the bonds, whether or not hedging has been undertaken, the selection of individual securities and so on.<\/p>

It is normal to have a bad year from time to time compared to your competitors. Even the most successful wealth managers are sometimes off the mark. If, on the other hand, you notice a lower return over several years, you should take action.

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Are you looking for the best wealth manager for you?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t
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