A Yearly Statement is an annual financial report summarizing the performance, transactions, and holdings of an investment account or portfolio, providing transparency and record-keeping for investors and advisors.
A Yearly Statement is a comprehensive report issued once per year by financial institutions, wealth managers, or investment platforms to account holders. It summarizes the key financial activities, including purchases, sales, dividends, interest earned, fees charged, and overall portfolio performance during the year. This statement serves as an official record of the investor’s holdings and transactions within the stated period. In the context of wealth management and family offices, Yearly Statements are crucial for tracking investment progress, understanding income and gains, and preparing for tax filing. They typically provide detailed breakdowns by asset class, individual securities, and applicable fees, offering a consolidated view that helps wealth managers and family offices make informed decisions and maintain compliance with fiduciary responsibilities. Yearly Statements may also include important metrics such as year-end portfolio value, realized and unrealized gains, and comparisons to benchmarks, allowing for performance assessment and strategic rebalancing discussions between advisors and clients.
Yearly Statements are vital tools in investment strategy and governance as they provide a transparent and periodic summary necessary for monitoring investment objectives. These statements help wealth managers and family offices identify portfolio performance trends, evaluate the effectiveness of investment strategies, and spot potential areas of risk or opportunity. The clarity and completeness of these reports enable better decision-making aligned with long-term wealth preservation and growth goals. From a tax planning perspective, Yearly Statements offer essential information on taxable events, such as capital gains distributions and dividend income, enabling advisors to strategize tax-efficient portfolio management. Moreover, detailed expense and fee reporting within these statements supports expense management and cost analysis, ensuring the family office operates within budget and fiduciary guidelines. In governance, these annual overviews reinforce accountability and transparency with beneficiaries and stakeholders.
For example, a family office receives a Yearly Statement from its wealth management firm summarizing the portfolio's activity from January 1 to December 31. The statement lists total purchases of $500,000, sales of $200,000, received dividends totaling $15,000, paid management fees of $10,000, and shows a year-end portfolio value of $1,200,000. Using this data, the family office can calculate the portfolio’s net gain for the year, assess income for tax reporting, and plan adjustments for the upcoming year.
Annual Report
An Annual Report is a broader and more detailed corporate document that provides stakeholders with a comprehensive overview of a company's financial condition, business activities, and strategic initiatives over the fiscal year, often including audited financial statements alongside management discussions.
What information is typically included in a Yearly Statement?
A Yearly Statement usually includes details on all transactions such as purchases and sales, dividends and interest earned, fees and expenses charged, realized and unrealized gains or losses, and the year-end portfolio or account value.
How can a Yearly Statement help with tax planning?
It provides a clear summary of taxable income, capital gains, and distributions incurred during the year, which are essential for preparing tax returns and implementing tax-efficient strategies like harvesting losses or managing income timing.
What is the difference between a Yearly Statement and an Annual Report?
A Yearly Statement focuses on summarizing an individual's or entity’s investment account activity for the year, while an Annual Report is a comprehensive document issued by companies detailing their overall financial performance, business operations, and outlook for shareholders.
