EP Wealth explains how to read your investment portfolio report, from account summaries and asset allocation to performance metrics and individual holdings. 

How to Read Your Investment Portfolio Report

Your portfolio report is designed to give you both a big-picture view of your investments and a detailed look at the individual assets that make up your portfolio. It shows how your portfolio is structured, how it's performing, and how it has changed over time.

This guide walks through each section so you know what you're looking at, what to give special focus to, and how to use the report to prepare for conversations with your advisor.

As you read through the report, you'll see each of your accounts listed individually. These may include retirement accounts, trusts, and taxable accounts. When reviewing performance or allocation for any single account, keep in mind that your financial advisor is managing all of them together as parts of a single investment strategy. This coordinated approach considers factors like tax planning, risk management, and cash flow needs across accounts rather than treating each one in isolation.

What's in Your Portfolio Report

1. Portfolio Summary — Your accounts and their current value
2. Portfolio Overview — How your portfolio has changed over time
3. Asset Allocation — How your investments are distributed
4. Performance Summary — How your portfolio has performed
5. Portfolio Holdings — The individual investments you own

1. Portfolio Summary

The report begins with a summary of your accounts and their current value. This section shows the total amount invested across your household portfolio and how that total is distributed across the different accounts you hold.

This is a useful starting point for confirming that your accounts are reflected accurately and for seeing how your overall portfolio value has changed since your last report.

2. Portfolio Overview: How Your Portfolio Has Changed

This example is for illustrative purposes only and does not represent a real client. Past performance is not indicative of future results.

This section shows how your portfolio's value has evolved over time. Any change in portfolio value generally comes from three sources:

• Contributions — money added to the portfolio
• Withdrawals — money taken out for spending or transfers
• Investment performance — market gains or losses

The chart in this section plots two lines:

• The light blue line represents your net investment — the total amount you've contributed over time, as if the money had simply sat in cash.
• The dark blue line represents your actual account balance, which reflects contributions and withdrawals as well as market performance.

The gap between the two lines shows the cumulative effect of investment performance on your portfolio. When the dark blue line is above the light blue line, your investments have generated gains beyond what you contributed. When it's below, the portfolio has experienced a net decline from market activity.

Below the chart, the Components of Change table breaks down what drove your portfolio's value over several time periods, including Year to Date, Previous 3 Years, and Inception to Date. For each period, you'll see:

• Beginning Value
• Contributions
• Withdrawals
• Ending Value
• Investment Gain or Loss

At the bottom of the table, your net portfolio return is shown as a percentage for each time period. This layout helps you separate normal cash flow activity — money going in and out — from market-driven changes, giving you a clearer picture of what's actually driving your portfolio's value.

3. Asset Allocation: How Your Investments Are Distributed

This example is for illustrative purposes only and does not represent a real client. Past performance is not indicative of future results.

This section shows how your portfolio is spread across different asset classes and sectors. You'll see two views:

1. Allocation by asset class shows the high-level breakdown: equities (stocks), fixed income (bonds), cash and equivalents, and other or alternative investments. This view tells you how the portfolio is balanced between growth-oriented holdings and more conservative positions.

2. Allocation by Sector provides more detail within each asset class. Within equities, you'll see how your stock investments are spread across:

• Large Cap — established global businesses
• Mid Cap — growing companies
• Small Cap — smaller companies that could offer higher growth potential
• International — companies outside the United States

Within fixed income, you'll see:

• Core Fixed Income — high-quality bonds designed for stability
• Strategic Income — investments that could provide additional yield

You'll also see allocations to Cash and Money Funds and Alternative Assets.

Together, these two views show how diversified your portfolio is across different parts of the market. Because different types of investments tend to perform differently depending on market conditions, this diversification is a key part of how EP Wealth manages risk and seeks to support long-term growth potential.

4. Performance Summary

The performance section breaks your portfolio's results down by asset class, so you can see how each part of the portfolio is contributing to the overall outcome. The report presents performance across two timeframes: Year-to-date (YTD) and Inception-to-date (ITD).

Year-to-date (YTD) shows how the portfolio has performed since the beginning of the current calendar year. This is a useful snapshot of recent activity, but because markets can move significantly in the short term, YTD results are best viewed as a progress update rather than a long-term measure of how your portfolio is performing.

This example is for illustrative purposes only and does not represent a real client. Past performance is not indicative of future results.

Inception-to-date (ITD) shows performance from the time your portfolio strategy was first implemented through the current report date. This longer view captures results across different market environments and generally provides a more meaningful picture of how the portfolio is tracking over time.

This example is for illustrative purposes only and does not represent a real client. Past performance is not indicative of future results.

Looking at both timeframes together can help you see how short-term market conditions fit within the broader trajectory of your portfolio.

5. Portfolio Holdings: What You Own

This example is for illustrative purposes only and does not represent a real client. Past performance is not indicative of future results.

This section lists the individual investments within each of your accounts, organized by asset class. For each holding, the report includes several data points:

• Weight — the percentage of your total portfolio allocated to that investment, which shows how much influence it has on overall performance.
• Cash invested — the amount originally invested in the position, excluding reinvested dividends or capital gains.
• Cost basis — the total amount invested, including reinvested dividends or capital gains. This figure is relevant for tax purposes when investments are eventually sold.
• Value — the current market value of the investment as of the report date.
• Unrealized gain or loss — the difference between the investment's current value and its cost basis. This is the paper gain or loss that would be realized if the position were sold.
• Cumulative income — the total dividends or interest payments the investment has generated since it was purchased.
• Current yield — the annual income the investment produces relative to its current value.

While this section contains the most detailed information in the report, its purpose is simply to show what you own and how each investment contributes to the overall portfolio.

Of these data points, cost basis and unrealized gain or loss are particularly worth paying attention to, since they affect the tax implications of any future sales. Your advisor can help you think through how these figures connect to your tax planning strategy.

What to Do with This Information

Before your next review meeting, it can be helpful to read through the report and note any questions. These might be about a specific holding, a shift in allocation, or how short-term performance fits within your longer-term plan.

Your advisor can help you interpret the numbers in the context of your broader financial strategy, including how your portfolio's performance, allocation, and holdings connect to your goals and tax situation.

If you have questions about your report or would like to schedule a review, reach out to your EP Wealth advisor. You can also learn more about how EP Wealth approaches investment management.

DISCLOSURES

• Request an appointment with an EP Wealth Advisor when you have a minimum of $500,000 in investable assets – which includes qualified retirement plans (IRA, Roth IRA, 401(k), taxable brokerage, cash (savings / checking) and CDs. Investable assets do not include your home, vehicles, or collectibles.
• This material does not include actual client information and is based on a hypothetical example. It should not be considered an endorsement of the firm by any client and does not represent the experience of any client or prospective client.
• EP Wealth Advisors, LLC. is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission, nor does it indicate that the advisor has attained a particular level of skill or ability.
• Hiring a qualified advisor and/or financial planner does not guarantee investment success and does not ensure that a client or prospective client will experience a higher level of performance or results. No guaranty or warranty is made so that any direct or implied results or projections being represented here will be met or sustained.
• The need for a financial advisor or financial planner and/or the type of services required are specific to the uniqueness of each individual’s circumstances. There is no guarantee or guarantee that the services offered by EP Wealth Advisors, LLC will satisfy your specific financial services requirements. Services offered by other advisors may align more to your specific needs.
• The screenshots of the reports are for illustrative purposes only. The information shown is hypothetical and not based on any client data. Any performance figures, returns, or growth shown are not actual results and should not be relied upon. Results will vary, and there is no guarantee that any investment will achieve positive returns.
• Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions. Content does not involve the rendering of personalized investment advice nor is it intended to supplement professional individualized advice.
• EP Wealth Advisors (“EPWA”) makes no representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information presented. All expressions of option are subject to change without notice.