--- title: "Draft portfolio reviews and Investment Policy Statements from dated sources." description: "Use a dated custodian export and approved model rules to calculate allocation drift, draft portfolio reviews, and prepare Investment Policy Statements for review." canonical: "https://scalewithsearch.com/articles/ai-memory-for-finance" date: "2026-01-28" modified: "2026-10-02" --- ## Site navigation - [Scale With Search](https://scalewithsearch.com/) - Real estate - Real estate - [Real estate](https://scalewithsearch.com/for/real-estate) - Work - Start here - [Send your brief](https://scalewithsearch.com/work#send-your-brief) - [Prepare your six-question brief](https://scalewithsearch.com/work#prepare-your-six-question-brief) - Build - [Site build, content library with SEO, signal desk](https://scalewithsearch.com/work) - For your business - Trades and home services - [Auto body and collision shops](https://scalewithsearch.com/for/auto-body-and-collision-shops) - [Foundation and home repair contractors](https://scalewithsearch.com/for/foundation-and-home-repair) - 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You draft a quarterly portfolio review for a client. You need the current allocation, the target in the approved Investment Policy Statement, and the firm's review threshold. Those facts sit in the custodian report and your practice records. You open ChatGPT. It does not know which report date applies or which portfolio model the client approved. It can write a calm summary while using the wrong allocation. You still have to check every number. This page shows how to draft portfolio-review summaries and Investment Policy Statements from dated sources. It uses a synthetic drift calculation, keeps account data out of the standing file, and leaves recommendations with the advisor and compliance reviewer. ## What the assistant must know about your practice Financial services is precise work under regulatory review. Compliance reviews client letters. Each recommendation needs documentation. Marketing material needs approval. The assistant needs these facts: - your investment philosophy and portfolio management approach; - your client segments: risk tolerance, age range, and account types; - compliance rules for client letters and disclosures; - language patterns that pass your firm's review; - your approved product list and standard allocations; - commentary patterns that match your philosophy; - client communication rules and review workflows. This is not account-level data. It is your professional method and compliance framework. Today it lives in your head, your compliance manual, and years of trial and error. ## How CLAUDE.md holds your practice context `CLAUDE.md` is a Markdown file on your computer. You write your practice context once: philosophy, communication style, compliance rules, and standard portfolio models. Claude Code reads the file at the start of each session in that folder. The file stays on your machine, and you control every line. The model runs on Anthropic's servers, though. When Claude Code reads the file or your request, that text goes to the provider for processing. Treat every session as a transmission to a third-party vendor, and decide what enters it on that basis. Here is a synthetic practice-file example for an independent, fee-only registered investment adviser (RIA). Its models and rules are invented; your approved IPS and compliance manual control: ```markdown ## Practice context - Firm: independent RIA, fee-only fiduciary - Focus: retirement planning (70%), wealth accumulation (20%), college planning (10%) - Clients: age 45 to 65, mass-affluent to high-net-worth, risk-averse to moderate - Philosophy: evidence-based, low-cost index funds, tax-efficient, long-term buy-and-hold ## Portfolio models - Conservative (30/70): age 60+ or low risk tolerance - Balanced (60/40): standard retirement allocation - Growth (80/20): age 45 to 55 with high risk tolerance - Core holdings: total US stock index fund, total international stock index fund, total bond index fund - Review: annual; flag drift at 5 percentage points (synthetic model rule) - Flagging prompts advisor review, not an automatic trade ## Compliance rules - Every client letter: firm name, disclaimer ("This is not a recommendation..."), Form ADV Part 2 reference - Banned phrases: "guaranteed returns", "beat the market", market-timing predictions, specific stock recommendations - Required disclosures: past performance, fee structure, fiduciary status - Review: archive all client email; compliance pre-approves the quarterly newsletter ## Client communication - Tone: educational, calm; no fear, no hype - Level: plain language for a non-financial reader - Volatility letters: long-term view, historical context, stay the course - Meeting follow-up: within 24 hours; bullet summary, next steps, action items ## Regulatory frame - Registration: SEC-registered, state notice filing in NC - Custody: institutional custodian; no discretionary trade without client authorization - Privacy: Regulation S-P; annual privacy notice; opt-out steps - Records: 7-year retention, email archive, CRM notes ``` Now ask for a portfolio summary from a dated synthetic custodian export. The draft should identify the report, model version, calculations, and required review. It must not choose a model from age alone. ## Portfolio reviews and policy drafting ### Keep market letters in their own workflow Use [AI for financial advisors](/articles/ai-for-financial-advisors) for market-letter drafting and client communication. Keep its source and compliance checks. This page concentrates on portfolio reviews and IPS drafts. ### Portfolio review summaries Quarterly reviews start next week. You have 40 clients. Each needs a one-page summary of performance, allocation drift, rebalance recommendations, and changes since last quarter. Your file stores your model allocations, your report format (time-weighted return against a benchmark), your rebalance thresholds, and your meeting agenda. For the first test, prepare a separate project file with invented allocations, performance data, and account changes. Real account exports need the compliance-approved vendor workflow. Initials or client IDs alone do not anonymize financial information. Claude then produces each summary in your standard format: performance against benchmark, allocation against the target model, any rebalance recommendation, and talking points. You check every number against the custodian's report before the meeting. ### A synthetic allocation-drift calculation The invented custodian export `exports/demo-2026-09-30.csv`, dated 2026.09.30, holds 132,000 dollars in equities and 68,000 in bonds. The total is 200,000. The synthetic approved IPS, version 2026.07.01, targets 60% equities and 40% bonds. Equities are 132,000 / 200,000 = 66%. Bonds are 34%. Equity drift is 66% minus 60% = 6 percentage points; bond drift is minus 6 points. The model file, version 2026.07.01, flags an absolute drift of at least 5 percentage points for advisor review. This example therefore produces a review flag, not a rebalance order. Pass: a fresh session shows both export rows, the total, the formula, the IPS version, and the 5-point review rule. Fail: it treats 6 points as a 6% relative change, uses an old export, or substitutes another model. Remove the threshold or model version and retest. The assistant must stop rather than choose one. An advisor checks the arithmetic and suitability; compliance clears the client draft. ### Investment Policy Statements A new client needs an Investment Policy Statement (IPS). It records objectives, risk tolerance, asset allocation, and investment guidelines. Your file includes your standard IPS structure: - objectives: retirement income, wealth preservation, legacy planning; - the risk tolerance assessment framework; - allocation models tied to risk profiles; - guidelines: approved asset classes and prohibited investments; - the rebalance policy; - the review schedule. Use an invented client for the first draft. Provide approved objectives, timeline, and questionnaire inputs from the permitted working set. Claude formats an IPS draft; it does not select the allocation or decide suitability. The advisor verifies the source inputs, and compliance reviews the draft. ### Regulatory disclosure updates A new SEC requirement changes how you report performance. You must update Form ADV Part 2, your client agreements, and your website disclosures. Your file stores your disclosure templates and regulatory frame. Add a note with the new requirement and the official SEC guidance text. Then ask Claude to revise each document and keep your structure and plain-language style. Claude returns draft updates for all three documents and shows what changed and where. You review them and send them to compliance counsel for approval. ## Keep client financial data out of the file Do not put these items in `CLAUDE.md`: - client names tied to account balances; - Social Security numbers and account numbers; - individual portfolio holdings; - personal financial details. That is nonpublic personal information under Regulation S-P and the Gramm-Leach-Bliley Act. It stays in your CRM and custodian systems. These items belong in the file: your philosophy, model portfolios, compliance language, communication rules, and regulatory requirements. That is professional method, not client data. [What client data belongs in AI agent memory](/articles/client-data-in-ai-agent-memory) gives a general test for the line between the two. For client-specific work, use only the export and vendor workflow your compliance officer approved. Select the permitted project file for that job. Any client detail in a session still goes to the provider; initials are not an authorization to transmit it. Before you use this setup with any client information, get your compliance officer's written approval. Check the provider's data retention and training terms for the plan you use, and record the result. Your firm's recordkeeping rules may also apply to the drafts and prompts. [An AI memory retention and deletion policy](/articles/ai-memory-retention-and-deletion-policy) helps you decide what to keep and for how long. Local controls still matter. Encrypt the disk. Review every line of the file. Keep the file on a device that compliance approves. These steps protect the record at rest. They do not change what the provider receives during a session. ## Test the file before client work Run this check with synthetic data first: 1. Start a new Claude Code session in the practice folder. 2. Ask for a short volatility letter. 3. Check that the draft contains every required disclosure. 4. Search the draft for each banned phrase. 5. Ask for the synthetic allocation-drift calculation and compare every row, model version, and review threshold with its named source. Missing model approval must stop the recommendation. 6. Search the file for any client name, account number, or balance, and remove each one. The test passes when every disclosure appears, no banned phrase appears, and the file contains no client data. [Test an AI agent before production](/articles/test-an-ai-agent-before-production) extends this check to a full acceptance run. ## What changes when the assistant knows your practice Without context, some advisors avoid AI because of compliance risk. Others use it so narrowly that it barely helps. They rewrite the same client letter templates by hand and draft each IPS from scratch. A quarterly newsletter takes three hours instead of 45 minutes. Portfolio review prep repeats most of last quarter's work. With a practice file, the assistant starts each session with your philosophy, disclosures, and banned phrases. It drafts letters, reviews, and policy statements in your format. Compliance still reviews every piece. ## Approval and stopping boundary The assistant drafts commentary, summaries, policy statements, and disclosure changes. Compliance approves every client-facing piece. You check every number against the custodian or portfolio system. The assistant does not send client email, place trades, change allocations, or update the CRM. 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