When an individual decides to invest their money into a corporation – no matter what form of investing they choose – they will want an account for how their investment is faring.
The process of communicating that information to investors is known as investor reporting.
No longer content with an annual report that summarizes the yearly activity of their investment, today’s investors want greater transparency from their investment managers. They are looking for detailed and customized reports on a frequent basis. The volatile market, combined with a sense of anxiety about their investments, along with market and regulatory changes make investor reporting one of the most important aspects of a investment manager’s responsibilities.
As an investor, you want to know that your money is being used productively and wisely. As an investment manager, you want your investors to know that their investment is generating a profit. Investor reporting takes care of both issues easily – creating a win-win environment.
With the increasing functions of technology, investor reporting can be handled on-demand, as well as on a scheduled basis. Investors who want to keep a close eye on their investments may want access to daily or weekly reports. They may want real time reporting that allows them to make changes based on the performance of their investment without having to wait to the end of the quarter to make decisions.
Secure platforms for investors to be able to log in and view their investment status have been developed, allowing managers the flexibility of letting investors have access to their accounts via the internet. This same software platform can deliver timely, detailed reports to investors via email or other means of notification.
By using a reporting method that allows for investors to access their own accounts, managers are free to spend their time managing the fund, instead of fielding questions about investment status. That same system will save time by generating a series of reports to be delivered to the investors, so they will receive routine notification about the state of their investment.
No matter which method of investor reporting chosen, the important thing to remember is that consistency and reliability are essential to establishing a trusting and mutually beneficial relationship. Keeping investors informed will help them make smart choices about their money, and will allow them to maximize their investment opportunities.