Many retail investment clients lack in-depth knowledge of investments. They likely know what stocks and mutual funds are, but how to properly analyze these products may be out of their realm of knowledge.
With the introduction of investment applications such as Robinhood or Stash that offer free trades and fractional investing, people may shy away from investment managers. Even the large investment firms have begun offering free trades for stocks and ETF’s.
Regardless of how financial technology progresses in the investment space, investment management will always be needed. People want their money to grow without work, which is why a trusted investment manager brings value.
The responsibility of an investment manager on the surface is very self-explanatory. They are responsible to manage their book of clients and ensure their investment objectives are being met or on the way of being met. There is a level of fiduciary responsibility all investment managers should be adhering to.
As an investment manager, there are several ways you communicate with your clients and certainly, there is information they want to see. That in mind, client reporting is important, especially when it comes to things such as financial statements.
Your client likely wants to see several data points, such as recent transactions, profit and loss, and current portfolio value. How your client views these statements are probably in two different fashions.
The first being through an online client portal. This portal should be user friendly and provide all the information needed within the landing page or a couple clicks away. For those that check their account frequently, this will limit their need to navigate the platform.
The second will be through paper statements. While this is more frequent among the older generation, there is still a need for it. As an investment manager, it’s important they have the ability to construct and edit documents as needed.
Investment managers will also be needed to help with the legal side of things, such as taxes and transfer of assets should the owner suddenly pass. While the Internet is a good place to begin, odds are there is a lot being left on the table.
While there continues to be pressure put on investment management, there will always be a need. People with large wealth aren’t going to need investment apps, rather a person who understands their investment needs. If you are looking to improve your reporting or need software, take a look at what ReportWa offers and feel free to reach out.
