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Periodic Review and Recommendation
In addition to Active Management, Wright offers Periodic
Review and Recommendation for U.S. equity portfolios. Periodic Review and Recommendation is designed
for individual investors who are seeking periodic oversight of
portfolio holdings. It is recommended for accounts that have
restrictions or investment limitations that prohibit the immediate
restructuring of the equity portfolio to reflect Wright’s model. Periodic
Review and Recommendation provides a method to transition such
accounts gradually toward a model equity portfolio. Recommendations
are not implemented by Wright; they must be transacted by the trust
client or the account holder.
Review and Recommendation of an Equity Portfolio
This service seeks to identify those changes in an equity
portfolio which (within stipulated limitations) will provide the
greatest improvement in risk-adjusted return. Typically,
"limitations" pertain to the timing and magnitude of
capital gains. The management challenge is to restructure the
portfolio most effectively, while staying within stipulated capital
gains limitations. Periodic Review and Recommendation
applies Wright’s portfolio construction expertise in conjunction
with the analytics of Wilshire Atlas®
to the client’s existing
portfolio as follows:
- A Wright model portfolio which best mirrors the
appropriate equity benchmark, is selected for comparison.
Wilshire Atlas®
analyzes portfolio characteristics and fundamentals of the
stocks currently held in the client portfolio and compares
these factors to the appropriate model portfolio.
Investment recommendations are formulated, within the
limitations provided, to transition the client portfolio
towards the model portfolio.
When implemented, the portfolio’s characteristics will more
closely mirror the target portfolio (and benchmark) providing better
risk adjusted returns. These investment recommendations are then
summarized in an attractive, easy to read report.
Access to Service
Requests for Wright’s Periodic Review and Recommendation
service may be submitted electronically in most cases:
- Wright’s password-protected Internet site provides
a request template for all Wright client institutions.
SunGard®
Charlotte system users may use the SunGard/Wright interface to
transmit current holdings information.
Wright’s IT professionals work with a variety of file
formats and delivery mechanisms to enable the exchange of
information from and to other systems.
Once a Periodic Review and Recommendation has been
requested for an account, that account’s investment profile and
the review cycle requested (quarterly, semi-annual or annual) is
stored in Wright’s database. The results of each review are also
stored in the database. Future reviews are produced on demand,
following updating of the client’s profile and portfolio by the
requesting institution.
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