Investment reporting is becoming an important subject in wealth management industry. Asset management is getting into a complex scenario with inclusion of new asset categories. So trust worthy investment reporting is a key to reach in clients.
Global Investment Performance Standards (GIPS) are giving guidelines for structuring investment reports.
Wrongly valued holdings, non disclosure of counter party risks are making gaps in investment reporting and thus making clients to reach in wrong assumptions.
There are few key areas investment reporting need improvement
•Reports should be clear and transparent.
•Counter party risks should be disclosed
•Present, time weighted as well as money weighted returns
•There should be transparent fee structure and will be conveyed to the client. Management fee, transaction fee, performance fee if any should be indicated properly in investment reporting. This is very important because in long term it will largely impact investor’s both gross off fee return and net off free return.
•Complex products like structured instruments, derivatives, insurance products will be recorded properly. How these asset classes are treated in decision support tools, holding statements, accounting statements will be mentioned.
•Data inconsistency will be assured
•SEBI and other regulatory authorities are constantly watching the reporting standards. So staying along with the regulatory trends is crucial.
•Most of the investment reporting focuses on asset allocation, portfolio performance, transaction summary etc and completely ignores accounting side and risk analysis side. So keep an eye on these areas.
•The report should be timely and accurate
•Source of data should be selected carefully
•Methodologies to reach certain calculation, for eg; XIRR should be disclosed in report or provided upon request.
•There should be an error correction policy.
•Production and control processes are periodically reviewed.
•Report should clearly convey investments made, results achieved, risks taken, and costs incurred
•The investment report provides the user of the report with appropriate comparative data such as index data, a customised benchmark like sensex, Nifty, S&P etc.
•All kind of corporate actions occurred during the investment period affecting the clients portfolio should be mentioned in report.
•It is not about more data, more foot notes; more graphs will produce a clear report. It is accuracy and readability of clients makes a report valuable.
What Excella Software offers to an advisory?
•Excella advisory software can help advisory to produce the investment reports with following objectives
•Excella ensures the end users preference.
•Excella reports increase the communication and education between advisory and clients.
•Report assures minimum content necessary for a transparent and effective investment reporting.
•Advisor can select a format for reporting. This will enable advisory to convey each words of information important to the client.
Install Excella advisory software for best client reporting
Global Investment Performance Standards (GIPS) are giving guidelines for structuring investment reports.
Wrongly valued holdings, non disclosure of counter party risks are making gaps in investment reporting and thus making clients to reach in wrong assumptions.
There are few key areas investment reporting need improvement
•Reports should be clear and transparent.
•Counter party risks should be disclosed
•Present, time weighted as well as money weighted returns
•There should be transparent fee structure and will be conveyed to the client. Management fee, transaction fee, performance fee if any should be indicated properly in investment reporting. This is very important because in long term it will largely impact investor’s both gross off fee return and net off free return.
•Complex products like structured instruments, derivatives, insurance products will be recorded properly. How these asset classes are treated in decision support tools, holding statements, accounting statements will be mentioned.
•Data inconsistency will be assured
•SEBI and other regulatory authorities are constantly watching the reporting standards. So staying along with the regulatory trends is crucial.
•Most of the investment reporting focuses on asset allocation, portfolio performance, transaction summary etc and completely ignores accounting side and risk analysis side. So keep an eye on these areas.
•The report should be timely and accurate
•Source of data should be selected carefully
•Methodologies to reach certain calculation, for eg; XIRR should be disclosed in report or provided upon request.
•There should be an error correction policy.
•Production and control processes are periodically reviewed.
•Report should clearly convey investments made, results achieved, risks taken, and costs incurred
•The investment report provides the user of the report with appropriate comparative data such as index data, a customised benchmark like sensex, Nifty, S&P etc.
•All kind of corporate actions occurred during the investment period affecting the clients portfolio should be mentioned in report.
•It is not about more data, more foot notes; more graphs will produce a clear report. It is accuracy and readability of clients makes a report valuable.
What Excella Software offers to an advisory?
•Excella advisory software can help advisory to produce the investment reports with following objectives
•Excella ensures the end users preference.
•Excella reports increase the communication and education between advisory and clients.
•Report assures minimum content necessary for a transparent and effective investment reporting.
•Advisor can select a format for reporting. This will enable advisory to convey each words of information important to the client.
Install Excella advisory software for best client reporting
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