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Stewardship Reports

Finance 300 Portfolio Management Simulation. Stewardship Reports. Steward:.

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Stewardship Reports

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  1. Finance 300 Portfolio Management Simulation Stewardship Reports

  2. Steward: • The title of Steward was sometimes given to the person in charge of a noble's domestic staff and household. In some countries, the duties of a steward became more substantial, and included the management of finances and property. The House of Stuart, which eventually became the royal house of Scotland (and England), originally gained both its position and its name from their position as stewards to the king. • Wikipedia (http://www.answers.com/topic/steward?method=5&linktext=steward)September 28, 2006

  3. Portfolio Management Simulation • The Stewardship Report is an accounting document by which the Portfolio Manager(s) • Reports to the client • Audits the broker • Lets his Manager/Company know he's doing a good job and won't get them fired or sued. This is you

  4. CLIENT: Nice person who pays you to manage his portfolio PORTFOLIO MANAGER

  5. PORTFOLIO MANAGER UISES is your broker

  6. Professional Relationships PORTFOLIO MANAGER Client Relationship Broker Relationship CLIENT

  7. Stewardship Report Boss (Professor) Management Report PORTFOLIO MANAGER Stewardship Report Email Correspondence CLIENT

  8. Client Report • Consists of • Title Page • Summary of Assets • Transactions Record • Income Statement

  9. Client Report • Provides the client with a complete, accurate report of his portfolio. • Acts as evidence that you are a thorough, trustworthy steward of the client’s financial assets.

  10. Management Report • Demonstrates to your Boss/Professor that you balanced the statement to itself and to UISES before you sent it to the client.

  11. Management Report Thebrokerage Statement is a source document; changing the numbers on a source document gets you an F (for Fraud) • Consists of • Management Report Summary • Brokerage Statement

  12. Management Report • Compares the numbers derived from the Stewardship report with the numbers on the brokerage report to make sure that they balance.

  13. Management Report Each number in the Report column is taken directly from the stewardship report. Each number in the UISES column is typed in from the UISES statement.

  14. Balance • Balance means that two things are found equivalent. Market Value Market Value

  15. Book Value Out of Balance Out of Balance • The Stewardship Report template contains balance points that raise a red flag if the balance condition is not met. Book Value Out of balance

  16. OUT OF BALANCE • Out of balance report = F • Out of balance report with the red flags removed to disguise the discrepancies = J

  17. OUT OF BALANCE • An out of balance flag is a symptom of a problem – so dig out the cause of the problem, don’t just paper over the symptom

  18. OUT OF BALANCE Bernie Madoff -> <- Sir Robert Allen Stanford Bernie Ebbers -> <- Andrew Fastow

  19. Stewardship Reports • A perfect score on the stewardship report means that I could send it to the client as is. This requires: • that the report balances to itself and to UISES • that the format is clean and professional

  20. Guide to Stewardship Reports

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