For the investment manager, the nature of the reporting landscape is changing. Manual reporting solutions which consolidate output from seve...

For the investment manager, the nature of the reporting landscape is changing. Manual reporting solutions which consolidate output from several different platforms through a desktop publishing based application often fail to meet client expectations with regard to flexibility of content and timeliness of delivery. Such manual solutions also place unwelcome stress on the data management and operational processes of firms during client reporting periods.

The adoption of manual solutions to data integration and reporting causes significant challenges when client reports are required. Data from various sources needs to be accumulated, cross referenced, and reconciled before the report process can begin in earnest.

The manual nature of the process often leads to a proliferation of locally maintained spreadsheet based reporting placing a high dependency on the skills of the staff producing the reports, which in turn increases operational risk. Where spreadsheet solutions are utilised, they often exist outside of the control of the centralised IT development lifecycle, acceptance test and support process.

In order to reduce the risk of error, reduce operational risk and bring the production process under a central IT function, a technology based approach to the delivery of client reporting has been adopted by some firms. This has typically focused on efficiency, control of costs, and process automation.

Historically this was often limited to the use of performance measurement and data warehouse solutions. Whilst providing enhanced control and reducing costs to some extent, this approach focused on the delivery of account reporting data and typically bought little or no added value in respect of personalisation of report content.

Changes to the look and feel of the report pack such as a change in the branding or format of the report, or the generation of a new report component is often a lengthy process. In some cases this may require input from the IT department in terms of amending core-reporting systems.

As clients have become more sophisticated and demanding, client reporting has increasingly become a key component of the distribution strategy of the firm, critical in the creation of a strong identifiable brand and in establishing a reputation for good client service. In fact one could argue that a client’s periodic report is the most important communication they receive from their investment manager.

When considering how your firm could improve its report production process, you should consider the following questions: how can I:

·Increase the efficiency of the reporting production process to:
- allow the business to scale efficiently;
- standardise production processes;
- introduce pain free flexibility.

·Reduce costs by:
- removing bottlenecks in the production process;
- reducing or removing duplicated effort;
- automating non value added tasks.

· Improve effectiveness of client communication by:
- improving the quality of the content;
- making content and branding consistent across distribution channels;
- producing relevant, interesting, and timely information.

·Improve the accessibility of the data by:
- delivering consistent data to consumers across all distribution channels;
- providing a timely and accurate service to data consumers.

When considering how to implement changes to the reporting process, firms are increasingly implementing the much more sophisticated tools that are now available to support the automation of the report production process and its associated workflows.

The leading edge client reporting tools address many of the current problems such as collation of data from disparate sources e.g. fund providers, data vendors, back and middle office, and portfolio risk systems.

Once the data has been accumulated these reporting tools allow the informed user to intervene in the reporting process, for example to format reports to meet a specific client requirement or prepare datasets for export to a third party. This allows an element of customisation without compromising the quality or accuracy of the reports, and allows firms to deliver what appears to the client to be a bespoke service.

Costs may always be under scrutiny, but there really is no good reason today for the inefficient client reporting processes of the past to continue.

The automated delivery of consistent data to support daily and periodic client reporting (including performance and attribution data), fund manager reporting, and for marketing and responses to requests for information are eminently possible.

Investing in these modern technologies now should pay dividends in the future as operational costs and risks around the report production process are reduced. Less quantifiable of course, is improved client retention through improved client service as a result of delivering better quality reports in a more timely fashion.

Early adopters of these new technologies should also gain competitive advantage as well as easing their own growing pains.