The financial services industry can be forgiven for reaching for the headache tablets. The competition for both private client and institutional investment managers is intensifying - differentiation, professional customer relationship management and branding are becoming key. In addition, stakeholders, private clients and financial institutions are getting more and more critical with respect to performance reporting, demanding ethical behaviour, transparency, credibility and trust. Investment management clients are also becoming more sophisticated and savvy - they expect high-quality reporting and analysis of their portfolio’s performance. With performance measurement and analysis getting more complex, specialist know-how and quality reporting is required.
For the vast majority of UK private client and institutional fund managers, constructing a benchmark and measuring the performance of their portfolio in relation to the benchmark are central to their investment process. Often, the chosen benchmark is a market index and/or a combination of market indices.
The choice of a performance measurement technique has to reconcile the ease of implementation and the accuracy and clarity of the resulting information. rhymeSIGHT Performance Measurement allows the fund manager, back office personnel and most importantly the client to easily comprehend those results that need to be reported on.
Many wealth management operations have been extremely flexible in their communications with their clients with regard to their initial investment mandate and reporting thereof. With the recent MiFID legislation, they have now been forced into incorporating performance figures concerning the stewardship of those clients/portfolios assets. High time you might say but this only highlights the discrepancies that still exist between different wealth managers and their reporting method to their clients. With rhymeSIGHT Performance Measurement, all wealth managers are able to accurately report their performance for each client over any period they so desire. Fund managers can do this on line and through hard copy runs so that they can show their performance against the client’s initial mandate benchmarks. The system also checks and tracks any backdated transactions to ensure none are missed for any period. It highlights those backdated transactions that have been entered during a specific date range being reported on. These will have been input on a backdated basis involving stock or cash entered via a dealing, cash input or dividend screen.