The Power of Client Reporting is in Your Hands: 7 Best Practices to Tell a Compelling Investment Story

Even though many of us hoped that Jan 1st, 2021 we would all wake up from a bad dream, unfortunately, we’re still adopting this new normal. However, when it comes to client reporting there are a few reporting techniques that can help you navigate the challenges of remote client meetings and keep your clients engaged.

It all goes back to the client reporting packages:

  • Does your report content and styling support a virtual setting?
  • Does the sequencing of the report reflect the investment story progression you want to tell?
  • Did 2020 market performance create an opportunity to introduce a new investment performance page to the existing packages?
  • Do you include your firm’s 2021 Market Outlook in the client report packages?
  • Has your firm recently undergone an acquisition, re-branding, or reorganization?  If so, do client reports reflect these changes?

This may be the first time you’ve conducted virtual client meetings. In a virtual setting, less page content is more. There’s a tendency to use small font sizes in order to maximize the page content, making it difficult to read and digest the data. Does the report styling support a virtual meeting? Colored fonts and graphics can be difficult to distinguish depending on the quality of the monitor. Now is the time to make necessary adjustments to report content and styling to ensure successful client interactions.

The sequencing of report pages can have a significant impact on how the investment story unfolds. Here are 7 best practices to help you tell a compelling investment story to help you solve the challenges of remote client meetings:

  1. Starting with asset allocation creates an excellent opportunity to talk about the portfolio’s overall diversification.
  2. Transitioning to Total Portfolio and Asset Class performance versus market indices provides an overview of how the client’s portfolio performance measures up against the market.
  3. Drilling further into performance supports a discussion about specific strategies that have been implemented and how those strategies support the client’s declared goals.
  4. During the mid-year market volatility, perhaps you implemented a tactical allocation shift. An asset allocation over time report is a great tool for talking through year-over-year portfolio allocations.
  5. We all wish we had a crystal ball to see what’s coming! With the recent party change in the White House, investors are anxious to understand how that will impact the markets and their investment portfolios over time. Including your firm’s 2021 Market Outlook opens the door to another important conversation with your clients. Do they have lifestyle changes planned for 2021? How might those changes, coupled with the market outlook, impact their investment time horizon or risk profile?
  6. We saw quite a bit of merger and acquisition activity in 2020. If your firm has been acquired, gone through a re-branding effort, or re-organized business lines servicing the clients, you can conclude the package of reports reflecting those changes.
  7. Client reporting can be one of the most important tools in the investment professional’s toolbelt. Things are continuing to change fast and new normals are being established – now is the time to review your investment performance and client reporting to ensure that they reflect what’s important to your clients and to you.

Learn how First Rate can help share your clients’ unique investment story, provide and illustrate valuable insights that keep them engaged and confident about your ability to be a true wealth steward for their investments. Contact us today to explore all of our reporting options and our ability to tailor reporting to the needs of your firm and your clients.

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