The initial construction of an investor’s portfolio is based upon the client’s circumstances and long-term capital market expectations at the time of construction. The reason why a fiduciary must monitor the portfolio is because both of these broad categories are subject to change. Changes in the investor’s circumstances (risk tolerance, liquidity, establishment of a trust, or other factors) or changes in economic conditions or capital market expectations may necessitate changes to the client’s portfolio which should be carried out by the portfolio manager. |
