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Client reporting tops asset managers’ priority list

ReportingPersonalised and digitised client reporting is a key priority for asset managers according to recently published research.

A report by financial consulting firm Sionic found that 72% of the 50 firms surveyed want to provide clients with bespoke reports tailored to their specific investment requirements.

The study also found that 70% are currently implementing or considering a digitalised model for client reporting while the same agreed it was vital to introduce harmonised reporting standards across both physical and digital outputs.

However, the report found a significant gap between those talking about providing a seamless digital experience and those actually doing so.

"Our findings show the asset management industry at the start of a surge in the digitalisation in client communication,” said Clare Vincent-Silk, partner at Sionic and one of the authors of the report. “But it also shows that firms are operating at very different speeds when it comes to the adoption of digital.

“In our view, firms in the slow lane risk being left behind, as others benefit from increased client engagement, more loyal clients and greater client retention," said Vincent-Silk.

Sionic’s findings were supported by another report published by Clearwater Analytics that found personalised client reporting is the most important service considered by institutional asset owners when selecting asset managers.

The research surveyed institutional asset owners with more than $3 trillion of assets under management and found that nearly three-quarters selected client reporting as their top priority.

This was in contrast to after-fee performance, which was highlighted by just 21%.

According to Gaytari Rahman, president for Europe and Asia at Clearwater Analytics, the research shows that performance is just one factor in asset owners’ evaluation of managers.

“Client servicing and other value-added services are often the deciding factors that can tip the balance in hiring a manager,” said Rahman.

“Asset managers who invest in these capabilities and can effectively demonstrate them are ultimately the ones that will get rewarded, as the popularity of outsourced investment mandates continues to increase.” 

©2022 fundsTech

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