Every business involved in asset management must make client reporting a vital part of their service. It keeps clients informed about their investment strategy’s performance and outlook. Nothing can make an asset manager’s clients happier than timely reports indicating their investment success. 

There is a concern though. Collecting all data and organizing it in charts can be an arduous task. It takes enormous time and effort. It is ideal for strengthening the manager-client relationship by ensuring the investments are paying off. Timely reporting is the best way to retain clients and grow business for asset managers.

Let’s look at the role of client reporting in transforming asset management.

What Is Client Reporting?

Client reports present an investment’s performance and achieved results during a particular period. Since they focus on the metrics of each individual client, that include financial growth, revenue generation and market analysis, most investors depend on these reports to make strategic decisions.

Asset managers pull relevant data regularly, convert them into an organized report, and share them with their clients. The clients and their managers discuss the reports frequently and modify strategies to achieve the desired results. Some asset managers also have a dashboard that remains up to date with live data. Whenever clients check the dashboard, they get real-time stats and results.

Importance of Client Reporting in Asset Management

Client reports are handy for asset managers and clients alike. These documents provide executive summaries of the finished projects, which make them an integral part of asset management. Here are a few points that justify their importance:

• Transparency

Constant transparency is a crucial aspect of client-asset manager relationships. Instead of hiding the loss, regular reporting can keep both parties proactive, let them learn from their mistakes, and improve their future asset performance. While these reports keep the asset managers and clients accountable for their work, it’s vital to share and talk about poor performance as well. Adding insight and discussing helps deal with the issue as a team and develop rock-solid solutions to mitigate them.

• Regular Interaction with Clients

Regular communication is key to an asset manager’s relationship with their clients. Reports allow them to interact with clients frequently. Whether the asset manager reports after each investment period concludes or they send monthly reports to indicate the status of their investments, doing it regularly is of utmost importance. Client reports allow asset managers to share their ideas and thoughts on derived data. That way, they can prevent petty issues from transforming into a full-blown crisis. So, regular reporting helps clients realize their managers are always there to interact and respond.

• Keeping Clients in the Loop

Client reports are excellent tools for keeping clients informed about investment projects. Many might not realize the importance of different KPIs or the distinction between them. However, client reports can help them know the importance and meaning of different data points. Keeping clients in the loop by sharing data with them helps decide what to do, making them feel involved during the process. Consequently, it helps asset managers understand their client’s expectations and requirements and act accordingly.

• Informing Clients About Investment Success

Client reporting is equally important when investments are going great and also when they are not. The clients must know when their asset managers have done a great job. Accordingly, they can decide to extend the contract with the asset manager or resign it for other investments.

• Shared Responsibility Between Both Parties

Sending regular client reports keeps the asset managers and the clients accountable to each other. Asset managers create reports while considering specific KPIs and metrics, after having monitored these for a considerable period of time. Proper teamwork between clients and asset managers helps the latter send concrete reports to their clients while ensuring the fulfillment of tangible, measurable, and specific goals. Regular reporting allows asset managers to understand their client’s expectations and accordingly optimize their investments.

Client reporting is an integral part of the asset management business. It might take considerable time and effort, but it delivers optimal results for the clients and the asset managers. With real-time information on the asset’s performance and metrics, asset managers can keep the interaction alive with their clients and show their asset’s performance and results. With regular reporting, clients realize that their asset managers always do their best to support them and save their valuable money and time.