There are serious issues with the current client reporting framework. Clients are dissatisfied with the reports that are produced for traditional long-only investment strategies and managers face significant challenges reducing the gap between client expectations and reporting practices.
The situation has worsened over the past five years; there are two main reasons for this:
- Firstly, the rapid growth in product innovation has resulted in the divergence of investment strategy from client reporting.
- Secondly, the client perception of reports has shifted, particularly in the case of pension funds; more people are more interested in more detail than used to be the case. Paradoxically, the move towards specialist mandates has left pension fund trustees with less time to read reports. For these reasons, the role that client reporting plays in client relationships is changing.
There is no reason to believe this situation will improve.
Research Insights
To future-proof a client servicing strategy, it is therefore necessary for managers to implement best practice for report production as well as for report content. More than ever before, it is important for managers to adopt an integrated business strategy for client reporting; those who do not are likely to find themselves on the wrong track for some time to come.
This essential piece of reading, details the steps investment managers can take to get them back onto the right path, and provides a best practice framework which will align client reporting with client expectations for reporting on traditional investment strategies, on new strategies and on OTC derivatives.
Contact: Jackie Alvarez
Contents |
Related reports |
| Management Summary 1 1.0 Introduction 3 2.0 An Overview of Client Reporting 13 The role of client reporting in client management An holistic view of client reporting Formal period-end reports The recipients of investment reviews Report providers 3.0 The Development of Client Reporting 29 The client perspective of client reports The evolution of investment strategy A brief history of client reporting The divergence of reporting from strategy The disconnect with manager monitoring Looking to the future 4.0 Market Practice in Client Reporting 39 Valuation Reports Investment reviews Client reporting systems Recent trends 5.0 Best Practice in Client Reporting 59 The challenge of reporting to institutional clients The main shortcomings that need to be addressed Key future challenges The core requirements of clients The Client Reporting Framework Guidelines for best practice client reporting 6.0 Supporting New Investment Strategies and OTCs 81 The take-up of new investment strategies The lack of direction on reporting Market practice for reporting on new investment strategies and OTCs Best practice guidelines for reporting on new investment strategies Best practice guidelines for reporting on OTCs The impact on for performance teams The need for an integrated business strategy |
|