Step-five of the investment management process, monitor and supervise, is one of the most difficult to execute properly.  In this step there are three primary decisions that need to be made on a quarterly basis: (1) Is there a need for investment option replacement, (2) Is there a need for portfolio rebalance and (3)  Is there a need for overall asset allocation adjustment.

Before these decisions can be made an investor's portfolio needs to have the quarter-to-date, year-to-date and inception-to-date performance measured.  Once those performance numbers have been calculated, a comparison of the investor's portfolio to a benchmarked portfolio should be done to determine if the portfolio is performing satisfactorily relative to stated goals and objectives.  We realize that most investors do not have the ability to appropriately measure their performance, however, an effective comparison to modeled portfolios can still be achieved.

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