The quarterly report is the most regular conversation a firm has with a family, and often the least read. Pages of performance tables, allocation charts and benchmark comparisons arrive on schedule. The questions families actually ask are left to the meeting: are we on track, what changed, what do we need to decide?
Start from the whole picture
For a family with assets across trusts, partnerships and several custodians, the first page should show the whole: a consolidated balance sheet, by entity and in total, with liabilities and unfunded commitments included. Performance without the balance sheet tells half the story.
Lead with what changed
The most useful section is often the shortest: what moved this quarter, and why. A large distribution, a capital call, a change in a trust’s beneficiaries, a concentrated position that grew. Families notice when a report reads the same every quarter.
Put the decisions on the page
Every quarter carries decisions: a gift to make before year end, a rebalance, a loan to renew, a document to sign. Listing them with their deadlines and the advisor’s recommendation turns the report from a record into an agenda.
Make every number traceable
Each figure should tie to a statement or a valuation date, and private assets should show when they were last valued. When the family’s accountant or attorney reads the report, they should be able to find the source without calling the advisor.
Keep performance honest and simple
- Show returns net of fees.
- Compare against the benchmark agreed in the investment policy, not one chosen after the fact.
- Separate the liquid portfolio from private investments, whose returns are measured differently and reported later.
A report the family reads beats a report that is complete.
A structure worth trying
- One page: the balance sheet and what changed.
- One page: the decisions ahead, with dates.
- Performance, net of fees, against the agreed benchmark.
- An appendix: holdings, entity detail and sources.
A structure like this tends to change the meeting as well: less time walking through tables, more time on choices. Producing it every quarter for every family is the hard part, which is why Caldris drafts the first version from each family’s own records for the advisor to edit and approve.
This article is general information, not tax, legal or investment advice.