Start with the portfolio, then move to assets
This is a hypothetical annual-review frame. Compare opening and current exposure by region, currency, sector, and risk driver before discussing individual assets. The reverse order can bury portfolio change beneath company updates.
Separate market movement from active allocation
An exposure may rise because of new capital, valuation, foreign exchange, or a decline elsewhere. The review should identify the cause and compare it with the original risk budget.
Include future capital calls
Follow-on capital, debt maturities, unfunded commitments, and possible exits all affect deployable capital. Current net asset value is insufficient for the annual plan.
- Committed but undrawn capital.
- Asset-level financing and refinancing dates.
- Potential exit and distribution timing.
- Additional funding under stress.
Remove themes that have stopped explaining the asset
A theme may remain fashionable after a company’s customer, product, or policy dependence has changed. I would rather lose a neat label than preserve a relationship that no longer describes the holding.