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.
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
|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
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
Client reporting systems
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