Performance Measurement Enhances Client Reporting

29 May 2009

MBA Systems has added a portfolio performance facility to its Speedreport client reporting service, which produces high volumes of reports in an enriched format. The new facility enables reports to include benchmark-based graphic illustrations that show the percentage change in value over a selected time period, so that a client can see at a glance exactly how their investment has performed.

The ability to see such benchmark data in a clear and easy form can be even more important in a volatile market. The market may be down by an average of 30% but a client’s portfolio may only be down by 25%; alternatively, if the performance is worse than industry average, then the investor may need to meet with their advisor to review their investment strategy.

"There is a growing demand from both private and institutional investors to receive performance details relating to their investments,” explains Stephen Taylor, director of MBA Systems. “This new portfolio performance facility enables investment managers to show their clients not only how the value of their portfolios has changed over time, but also helps them to appreciate the relative performance of their investments in relation to the wider industry sector.”

The benchmark measure used is calculated from various market indices, such as the FTSE 100, in a combination to emulate the composition of a portfolio. In this way, portfolios are given different benchmarks to reflect the type of assets they contain. For example, a portfolio composed of international stocks, UK bonds and cash could have a benchmark comprising the FTSE World Index, FTSE A British Government All Stocks and BBA Libor 3 months.

Comparison between a portfolio’s performance and its given benchmark is illustrated on a graph contained within the report. This provides an accurate and precise measure of the investment performance to demonstrate how the value of a portfolio has changed against time and other yardsticks.

MBA’s Speedreport service is ideal for investment management firms that need to prepare high volumes of reports rapidly. Reports are customised to a firm’s corporate identity and the contents are tailored to the requirements of the business. To enhance the appearance and comprehensiveness of the reports further, the automatic generation of pie charts is a feature that has been added. These are most often used to provide recipients with an at-a-glance illustration of the composition of their portfolio.

High quality graphs and pie charts as well as firms’ branding are embedded in reports in vector format rather than the more usual bit map file. This enables reports to be increased in size without loss of clarity or the need for large output files. Being relatively small electronic files, the transfer of the data and processing of it is much faster. As a result clearer imaged graphical reports are delivered very quickly.

“Speedreport meets the investment industry’s growing need to produce high volumes of impressive reports very quickly to a firm’s precise requirements. The service is delivered on a fully managed, outsourced basis. These latest enhancements within Speedreport take the overall presentation one step further in making client reporting clearer and truly comprehensive,” concludes Taylor.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development