What Your Broker's Reports Should Tell You

Each month, most brokers or banks send a printout of information about your investments, often accompanied by a cover letter and some other documentation. While these statements provide ongoing updates about your investments and how they have performed, the quality and presentation of the information varies. The documents and printouts are frequently unclear, and investors often have trouble deciphering what is important and how to interpret the material even after discussions with a broker. In this article, we’ll give you some guidelines for interpreting the important information contained in these brokerage reports.
Asset Allocation and RiskTypically, your portfolio structure is presented as a breakdown of the various asset classes in which it is invested, such as stocks, bonds, cash equivalents, alternative investments, real estate and natural resources - your asset allocation. You may also see a breakdown within a specific asset class, such as segregating equities by market capitalization, or bonds according to the type of issuer.