Institutional Client

Portfolio Sufficiency Evaluation

Portfolio sufficiency isn’t just about having enough money to cover short term distribution requirements. It’s about the probability that a portfolio will be able to meet its objectives over decades. Portfolio sufficiency evaluation requires a credible monitoring system that accounts both for changes in market value and for fluctuations in the timing and valuation of portfolio obligations.

Bottom line: an effective portfolio sufficiency monitoring system tells you how well your portfolio is doing relative to its objectives, both now and in the future.

Our sufficiency analysis periodically tests whether the money on hand will likely suffice to fund projected future expenses. It’s not the same as performance monitoring. While performance monitoring provides important insights, it doesn’t address the question at the heart of the entire investment process: Is the portfolio now arranged so as to provide a reasonable expectation that it will be able to meet its future obligations?