The quality of investment management reports can be a significant element in attracting and keeping clients. Investors expect to be able to gain a clear understanding of a portfolio’s investment objective as well as risk and cost levels as well as information about performance metrics and holdings.
Investors will also need detailed information on the amount of the fees that are attributable to their account in the semi-annual or the annual shareholder report, based on the company’s performance. For mutual funds, this might include a breakdown of the total amount of fees paid by each shareholder and an explanation of how these fees were allocated to the performance of the portfolio.
However, providing this information within the context of the overall performance report may be a challenge for a lot of companies. Most investors keep their funds in omnibus accounts with broker-dealers. To give personalized fee information, a broker-dealer has to establish interfaces with record owners of these accounts to calculate and give this information to every shareholder.
Technology is readily available to enable these complex reporting requirements to be met without costly changes to internal systems. Clearwater Analytics is an industry-leading SaaS solution that enables growth for over 1,100 clients, including pension plans, government worldwide insurers, global insurance companies, and asset managers. Our platform is fully integrated into the market-leading Broadridge’s Analytics Master Data Warehouse and can be accessed via a web and mobile dashboard application. This enables the delivery of high-quality investment-performance-net-of-fees and other reporting outputs for both client and regulatory purposes.