How to read your investment statements

This guide breaks down exactly what to look for so you can quickly evaluate your investment and make an informed decision.

Why review your investment statement?

Regularly reviewing your investment statements allows you to:

• Confirm that the transaction is accurate
• See if your portfolio value is as expected
• Know what you have and what it’s worth
• Make sure your investments fit your goals and risk tolerance

Getting into the habit of reviewing your statements can help reduce uncertainty, increase your financial awareness, and ensure there are no surprises in the future.

Why investment statements are often overlooked

Investment statements often go unread because they seem long and complicated. Numbers and financial terminology are not always easy to understand, which can make the entire document feel intimidating. Some common challenges include:

• Too much information: With multiple pages of beautiful data, it can be hard to know where to start and what to look at.
• Not sure what matters: Some parts are more important than others, but this isn’t always clear.
• Mixed values: The difference between book value and market value is often assumed to be the return, but this is not always correct.

The statement becomes easier to read once you know what to focus on. Rather than feeling stressed, it can be a useful tool to check your progress and confirm that your investments are on track.

Reviewing investment statements doesn’t take much time. By focusing on a few key areas such as total value, transactions and performance, you can quickly and clearly understand how your portfolio is performing.

Thinking of it as a regular financial check-in, like reviewing a budget or tracking monthly expenses, helps build familiarity and confidence. Over time, the process becomes easier and what once felt complicated becomes a simple habit that makes you feel in control.

Think of it as a monthly check-in with your future self. The more familiar you are with your presentation, the easier and more natural the process will feel.

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Key areas to focus on

As you begin to review your statement, pay attention to the following.

1. Total Portfolio Value

Start with the big picture. Look at the total value of your portfolio and compare it to last month’s numbers. This indicates whether the overall value is increasing or decreasing. While it’s normal for markets to change, this quick comparison can help you track your progress over time.

2. Transaction

Next, review the activity in your account. Have you made a deposit or withdrawn money? Have you purchased a new investment? What fees are charged?

Every transaction should meet your expectations. If you notice something that doesn’t make sense or a transaction seems missing, be sure to contact your financial advisor.

3. Portfolio holdings

The holdings section shows what assets you own and the value associated with each investment. Here you’ll typically see:

• Book value: Also known as “adjusted cost basis” or “ACB,” the price you pay for an investment is adjusted for tax purposes to reflect any reinvested dividends or other cost adjustments to ensure you don’t get double taxed when you sell.
• Market value: If you were to sell the investment, what would it be worth today.

It’s important to know that the difference between book value and market value doesn’t always show your true return. For example, if dividends are automatically reinvested back into the investment, your book value will rise even if you don’t put in additional money yourself.

4. Asset allocation

Your statement will also show your allocations to categories such as stocks, bonds, and cash. This breakdown should reflect your risk tolerance and long-term goals. If your allocation changes significantly due to market performance, it may be time to rebalance to get back on track.

5. Performance and expenses

Finally, look at your overall performance and the fees you charge. Some reports include your rate of return, but not all reports do. If you don’t have one, you can ask your advisor for a performance summary.