by Tom Bradley

In my letter to clients in our Q2 report, I finished with an appeal: “I strongly encourage you to read your client statement that was distributed with this report (if you haven’t already). It’s important that you know how you’re doing, what you’re paying us and whether your asset mix is where you want it to be.”

In the Globe and Mail recently, Rob Carrick reported on a JD Power survey that asked 4,903 Canadian investors about their account statements. They had this to say:

• 24% of those surveyed reported a complete understanding of fees, which was down from 27% in a previous survey.
  
• Only 23% noticed a change in their reports after the CRM2 regulations went into effect.
  
• A third of the investors said, “their adviser didn’t clearly communicate reasons for the performance of their investments, and 41% said their adviser did not explain fees.”

Only a quarter understand their fees? Really? I would hazard a guess that the percentages for Steadyhand are significantly higher. We have an easy-to-understand statement that arrives in our clients’ email boxes 5-7 business days after quarter-end. It’s comes with a Quarterly Report, which provides a complete explanation. They know how they’re doing in dollar and percentage terms (after fees) and what they’re paying, again in dollar and percentage terms.

I’ve been a noisy advocate for better reporting (and am doing this post) because I believe knowing this basic information is the foundation for becoming a better and more confident investor.

If you’re not reading and understanding everything on your account statement, it’s time to get at it. It’s important stuff. Your investment portfolio will determine how you live the last third of your life. So, four times a year, read your statement from start to finish. Discuss it with your family. Ask questions of your advisor. And wait to blow JD Power away when they call.