Building Better Benchmarks
It all begins with the benchmark. In our work with thousands of advisors, we have found that benchmarks are understood to be important, yet are troublingly underutilized. While 72% of advisors we surveyed acknowledged that benchmarks are important in client performance reviews, 44% confessed that they do not use a benchmark when building client portfolios. In other words, advisors are much more likely to use benchmarks at the end of their process, to evaluate a portfolio’s performance, than in either constructing or making changes to the portfolio.