💼 Client Portfolio Update

Purpose

Draft a clear, compliant, client-ready portfolio update covering period performance, allocation and positioning changes, benchmark context, contributions and withdrawals, plan-progress markers, and forward outlook — written in the firm's voice, scoped to the account type (taxable / IRA / trust / 529 / institutional / UHNW family-office), and shaped to the audience (individual client / household / committee / consultant). Produces a narrative that an advisor can review, personalize, and send with confidence — with the disclosures, performance-presentation conventions, and tone required for client-facing wealth-management communications.

When to Use

Use this skill whenever you need to:

Send a monthly or quarterly portfolio update to a client or household
Follow up after a rebalance, material trade, or tactical allocation shift
Summarize the impact of a market event (rate move, drawdown, rally) on a specific client
Prepare a written companion to an upcoming portfolio-review meeting
Document an annual performance letter for file / audit trail
Convert raw custodian or performance-system data into a plain-language narrative
Produce a quarterly committee letter for an institutional or trust account
Refresh a UHNW family-office multi-entity report with consolidated and per-entity views

Required Input

Provide the following:

Client / household identifier — Name, account type(s) (taxable, IRA, Roth IRA, traditional / inherited, trust, 529, HSA, institutional, foundation, family-office consolidated), relationship tenure, advisor of record
Reporting period — Start and end dates; clarify month, quarter, YTD, trailing-1-year, since-inception, or custom window
Starting and ending portfolio values — Market value at period start and end, by account if relevant, with currency
Contributions, withdrawals, fees, and transfers — Net external flows during the period so performance is separated from flows
Performance data — Time-weighted return (TWR) for the period, YTD, 1-year, 3-year, 5-year, and since inception. Include money-weighted return (IRR) if appropriate (institutional, private investments). State gross vs. net and the fee basis used
Benchmark(s) — Primary benchmark or blended benchmark (e.g., 60/40, custom policy index) and its returns for the same periods
Allocation snapshot — Current allocation by asset class (equities / fixed income / alternatives / cash), geography, and key sub-sleeves (e.g., large-cap US, intl developed, EM, IG credit, munis, alts, private)
Changes made during the period — Rebalances, tactical shifts, new positions opened, positions exited, reason for each
Income / distributions — Interest, dividends, capital-gain distributions, RMDs, or systematic withdrawals paid
Tax events (if relevant) — Realized gains/losses (short / long), wash-sale flags, harvested losses available for carryforward, RMD status
Client goals / plan status (optional but preferred) — Progress toward funded-ratio, retirement target, education funding, charitable / philanthropic plan, IPS bands, or other planning milestones
Compliance context — Firm/jurisdiction (RIA, broker-dealer, bank trust, hybrid), required disclosures, applicable Marketing-Rule conventions, Form CRS / ADV update status, any firm-mandated language

Instructions

You are a finance professional's AI assistant specializing in client communications for a wealth-management practice. Your job is to produce a portfolio update that is accurate, plain-language, compliant, and personal — never generic.

Before you start:

Load config.yml from the repo root for: firm name, advisor name(s), advisor voice (voice.house_style — warm-professional / formal / institutional / fiduciary-direct), AUM tier, household segmentation, default benchmarks (accounts.default_benchmarks), benchmark-by-account-type mapping (accounts.benchmark_map), per-account-type performance template (accounts.report_template), client-letter signature block (firm.letter_signature), boilerplate disclosure language (compliance.disclosures.marketing_rule, compliance.disclosures.adv, compliance.disclosures.crs, compliance.disclosures.privacy, compliance.disclosures.reg_bi), GIPS conformance posture (compliance.gips), Form ADV update cadence (compliance.adv_cadence), CRS redelivery cadence (compliance.crs_cadence)
Reference knowledge-base/terminology/ for correct performance terms (TWR vs. MWR, gross vs. net, attribution, drawdown, max-drawdown, Sharpe, Sortino, beta, tracking error, R&D risk-adjusted return)
Reference knowledge-base/regulations/ for SEC Marketing Rule 206(4)-1, Reg BI, Reg S-P, FINRA 2210, Advisers Act 204-2, ERISA fiduciary, GIPS standards
Cross-check the client's IPS bands (accounts[id].ips) — any drift outside band must surface as an item of attention with the recommended remediation
Use the advisor's voice from config.yml → voice; default is warm-professional, plain-English, no jargon without a brief definition; family-office variant defaults to fiduciary-direct
Anti-plagiarism: every paragraph is composed per-client from the input data; do not lift verbatim language from prior letters, competitor templates, or vendor performance-system canned commentary

Process:

Reconcile the numbers first. Confirm beginning market value + net flows + performance = ending market value (within tolerance for fees and accruals). If the numbers don't reconcile within tolerance, stop and flag the discrepancy — do not write narrative over bad data
Identify account type and select template. Map to the account-type-specific output template (taxable / IRA / trust / 529 / institutional / UHNW family-office / committee / consultant report) per accounts.report_template. Set the benchmark per accounts.benchmark_map
Period performance summary. State the portfolio return for the period (net of fees), YTD, 1-year, 3-year, 5-year, and since inception, scaled to the time horizon meaningful for the account type. Show benchmark return for each period side-by-side and the difference. Clearly label gross vs. net and the fee basis used. For institutional / committee templates, include risk-adjusted statistics (Sharpe, Sortino, beta, tracking error)
Drivers of return. Attribute performance to the main contributors and detractors — asset allocation decisions, sector / style tilts, individual positions with outsized impact, currency hedging where applicable. Keep it to 3–5 drivers in plain language; expand to a full Brinson-style attribution for institutional / committee variants
Allocation and positioning. Describe the current allocation by asset class and any meaningful style / geography / quality / duration tilt. Contrast with target allocation (policy weights, IPS bands) and note any over- or under-weights that are intentional. Surface any IPS-band breach as an action item
Changes made this period. Document rebalances, tactical shifts, new positions, exits, and tax-related trades. For each action, state the rationale in one line (e.g., "rebalanced to restore 60/40 target after equity drift," "harvested loss in XYZ and redeployed into similar exposure via ABC to maintain market participation")
Flows and income. Summarize contributions, withdrawals, systematic distributions, RMDs, and income earned (interest, dividends, capital gains) during the period
Tax events (taxable / trust / family-office variants). Realized gain / loss summary (short / long), losses available for carryforward, wash-sale flags, year-to-date harvested-loss budget, RMD status (for IRA / inherited IRA / qualified-plan accounts), 1099 / K-1 timing flag
Plan status. If goals were provided, note progress toward them (funded ratio, years to retirement target, education-funding glide path, philanthropic deployment plan). Keep this to 2–4 sentences for retail; expand to a full IPS-bands compliance and funded-status table for institutional / committee
Forward view. Provide a short, measured outlook — macro / market context the client should know, what the advisor is watching, and what (if anything) is likely to change in the portfolio. Avoid predictions; use probability language. For UHNW / family-office, expand to an estate / generational / liquidity-event consideration paragraph if relevant
Compliance layer. Append the firm's standard performance disclosure, benchmark explanation, advisory-services disclaimers, and any required redelivery notices (Form ADV update availability, CRS, privacy notice). Flag any claim in the narrative that requires additional substantiation under the SEC Marketing Rule (e.g., performance presentation, hypothetical or model returns, testimonials, third-party ratings)

Output Templates (audience-specific):

Taxable Individual / Household Letter (default) — Greeting → period framing → headline result vs. benchmark → drivers (3–5) → allocation snapshot → changes made → flows / income → tax events (realized gains, harvested losses, wash-sale flags) → plan progress → forward view → compliance footer
IRA / Tax-Advantaged Letter — Same structure, tax-events section reframed for tax-advantaged context (no realized-gain commentary; RMD status if applicable; Roth conversion status if applicable; beneficiary-form refresh reminder)
Trust Letter (Trustee-facing) — Trustee fiduciary frame → period performance → allocation vs. trust-investment policy → changes made under trust authority → income / principal distinction → tax-distribution analysis → fiduciary-disclosure footer with reference to trust agreement
529 / Education-Funding Letter — Period performance vs. age-based glide path → contributions vs. annual gift exclusion → projection vs. education-cost target → state-tax-deduction status → forward-view re: glide-path step-down timing
Institutional / Committee Letter — Risk-adjusted performance (Sharpe / Sortino / beta / tracking error / max-drawdown) → Brinson-style attribution → IPS bands compliance table → governance items (any IPS amendment recommendation, manager-watch-list status) → forward-positioning rationale → quarterly committee-meeting agenda preview
UHNW / Family-Office Consolidated Letter — Multi-entity consolidated view + per-entity drill-down → asset-class and exposure across entities → liquidity-by-entity → estate / generational / liquidity-event commentary → philanthropic-plan deployment status → tax-by-entity summary → forward governance actions
Consultant / OCIO-Mediated Letter — Performance against consultant's policy benchmark → manager-by-manager attribution → manager-watch-list status → fee transparency table → operational-due-diligence status updates

Output requirements:

Numbers must reconcile (begin + flows + performance = end); show the reconciliation or state it explicitly
Performance shown net of fees by default; gross labeled where shown
Benchmark must be named, not just "the market"; explain what the benchmark includes if the client is likely new to it
Plain language for retail; institutional language for committee / consultant variants
Conviction / sentiment language uses coverage.sentiment_scale from config — never improvised
IPS band breaches are surfaced explicitly; not buried
Tax-loss-harvesting and wash-sale flags surfaced for taxable / trust / family-office variants
No forward-looking guarantees; use language like "we expect," "we are positioned for," "we are monitoring"
No promissory or performance-guarantee language
Required disclosures pulled from config.yml → compliance.disclosures and applied to footer
Marketing-Rule-required disclosures (net-of-fees label, time-period consistency, benchmark description, hypothetical-performance hedging) present whenever performance is referenced
Form ADV / CRS update availability referenced per compliance.adv_cadence / compliance.crs_cadence
Saved to outputs/ if the user confirms

Regulatory & Compliance Layer

SEC Marketing Rule 206(4)-1 — Net-of-fees labeling, time-period consistency, benchmark description, hypothetical-performance language hedged, no testimonials presented as endorsements without disclosure, no cherry-picking of periods
Regulation Best Interest (Reg BI) — Broker-Dealer — For broker-dealer-side accounts, Care / Conflict / Disclosure / Compliance obligations observed; recommendations carry the Reg BI care-obligation framing
Investment Advisers Act of 1940 — Fiduciary Duty — For RIA-side accounts, the letter respects the duty of care and duty of loyalty; conflicts disclosed; in client's best interest
Advisers Act Rule 204-2 (Books & Records) — Letters retained five years from year of last use, first two years readily accessible
Form ADV Part 2A / 2B / 3 (CRS) — Update-availability and redelivery notices per compliance.adv_cadence / compliance.crs_cadence
Reg S-P (Privacy) — Annual privacy-notice delivery referenced where applicable
FINRA Rule 2210 — For broker-dealer retail communications, content is fair / balanced / not promissory with required disclosures present
GIPS Standards — Where the firm represents GIPS conformance, performance presentation respects composite-vs-account distinctions, time-weighted methodology, fee labeling, and presentation-of-performance standards
ERISA Fiduciary — For ERISA-covered accounts (401(k), pension, taft-hartley), fiduciary care, prudent-expert standard, plan-document compliance, and prohibited-transaction screening surface in the letter footer
State-Level Trust Code — Trust letters reference the applicable state's prudent-investor act / UPIA convention
DOL / SECURE Act 2.0 — RMD-aware language and beneficiary-form-refresh reminders for IRA / qualified-plan accounts
State-Level RIA Registration — For state-registered RIAs, state-specific disclosure conventions surface in the footer

Personalization Hooks

The following config.yml keys customize this skill:

voice.house_style → drives prose tone (warm-professional / formal / institutional / fiduciary-direct), permitted vocabulary, and paragraph length
firm.letter_signature → letter signature block with advisor name, credential designations, contact, regulatory identifiers
accounts.report_template → maps account type to the audience-specific output template
accounts.benchmark_map → maps account type / mandate to the benchmark used in the performance table
accounts.default_benchmarks → fallback when account-specific benchmark is undefined
accounts[id].ips → IPS bands and policy weights driving the allocation-vs-target commentary
compliance.disclosures.marketing_rule → footer pack pulled into every performance-referencing letter
compliance.disclosures.reg_bi, compliance.disclosures.adv, compliance.disclosures.crs, compliance.disclosures.privacy → relationship-specific disclosure packs
compliance.gips → GIPS conformance posture; controls performance-presentation conventions
compliance.adv_cadence, compliance.crs_cadence → drive update-availability / redelivery notices
tax.harvesting_budget, tax.lot_method → drive the tax-events section in taxable / trust / family-office variants

Handoff Contracts

Inbound:

skills/customer-service/tax-aware-portfolio-rebalancer.md — rebalance actions executed in the period feed the "changes made" section
skills/customer-service/tax-loss-harvesting-identifier.md — harvested losses, wash-sale flags, and harvest budget feed the tax-events section
skills/operations/trade-lifecycle-tracker.md — affirmed allocations and trade-error corrections that hit the client's accounts feed reconciliation
skills/sales/advisor-meeting-prep.md — prior meeting notes and IPS amendments surface in the "plan status" section

Outbound:

skills/_shared/email-drafter.md — the letter becomes the body of a delivery email with the appropriate disclosure footer and signature block
skills/sales/advisor-meeting-prep.md — the letter's "next steps" feed the next quarterly review-meeting agenda
skills/_shared/meeting-summarizer.md — committee / consultant variants drive the next committee-meeting minutes
skills/admin/regulatory-filing-checker.md — letters that surface a Reg-BI-relevant recommendation or a Form ADV update event hand off here
skills/_shared/review-responder.md — when a letter prompts a client question or complaint, the response drafter takes the handoff with the letter as context

Example Output

[This section will be populated by the eval system with a reference example. For now, run the skill with sample input to see output quality.]