First Rate Risk Reporting … It Exists!

Published by Marshall Smith, CIPM, Chief Product Officer, Products
August 29th, 2016

Is your 5% return for the past 3 years the same as your neighbor’s 5% return?  At first glance, you might say yes. However, the amount of risk an investor takes is a key component in understanding the efficiency of the rate of return. risk reporting new

For example, let’s say your portfolio had steady returns each month to achieve 5% over the three-year time period. Your neighbor’s took wild swings along the way but ended up with a 5% return over the same three years. Which path would you rather take as an investor? That’s right, you would very likely take the path of least volatility. 

Risk reporting has been a key component for institutional clients, but it has yet to become standard for many private clients. While the concept may be more complex than a return, you can overcome these barriers through the use of graphs and other visuals.  After all, if your job is only to produce higher returns than your competition, someone else will always be able to show a higher return for the same period of time.  However, if you are able to show how you effectively manage both risk risk reporting new 2and reward, then you are able to better educate your client on the value you bring as a wealth manager. 

First Rate’s OnPoint reporting solution contains risk reporting that you can use to better communicate the value you bring to your clients.  Included below are two of the panels that can be pieced together into a custom branded client presentation that contains ex-post risk statistics.  The statistics available range from volatility measures (such as Standard Deviation) to risk adjusted return measures (such as the Sharpe Ratio).

If you are interested in making risk reporting a part of your branded client reporting package, contact your client service manager below. If you do not know your client service manager, contact us and we can help you out! 

  • Kate Baird –
  • Jeanne Benson –
  • Rob Bethmann –
  • Keith Lotz –
  • Layne Wharton –

We look forward to hearing from you!



About the Author: Marshall Smith CIPM, Chief Product Officer, has been with First Rate since 2006. You can follow Marshall on Twitter @1stRateMarshall, or connect via LinkedIn.

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