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Monitoring performance
Once you've invested in a managed account,
your financial adviser's role is to monitor the performance of
your account, and to act as a liaison and coordinator between
you and the investment manager you've chosen together.
Keep in mind that while a managed account's market
focus and investment style — mid-cap growth or large-cap
value, for example — are the most significant influences
on its performance, a professional manager's skill often determines
whether an account outperforms its market.
In some managed account programs, qualified financial
advisers may assume discretionary responsibility and take on the
role of the money manager.
Setting benchmarks
It's important to establish benchmarks against which you and your adviser can measure the progress you're
making toward the goals you've laid out. Those benchmarks
can be either public ones, such as the Standard
and Poor's 500-stock index for a managed account
investing in large-company stocks, or a more personal standard.
Evaluating current performance against your expectations
will help you judge whether you've made the right investment
decisions. You can always change managers or asset allocations
if you're disappointed in the results, though most experts
suggest that you don't act too hastily.
Measuring against well-chosen benchmarks, which
your adviser can help you identify, may also help clarify whether
your expectations are reasonable. If not, you may have to adjust
them to be more in line with market realities.
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