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Buy-side client communications need a rethink, survey finds

Communications SurveyData gathering is the most time-consuming hurdle to client communications and reporting, according to a survey of 100 buy-side executives by investment management solutions provider, SimCorp.

The report on the state of client communications in Europe and North America also showed that 50% of those polled use systems that are over five-years-old.

Client communications are often viewed as cumbersome rather than as a key differentiator, the survey found.

In addition, some asset managers are grappling with disparate data, disproportionate headcounts, fragmented systems and inefficient processes.

Other findings of the survey show:
     •   Over 30% of firms spend 250 days a year or more on producing investment reports for clients;
     •   75% of firms use six or more systems for client communications and reporting;
     •   34% of firms dedicate at least 25-75 employees to client communications and reporting;

Stuart Keeler, managing director at SimCorp Coric, said: “In the past, client communications and reporting was seen as a cost center, but the investor-manager relationship has changed significantly over the last decade.

“Firms that wish to thrive now not only need to re-think their operational approach to client communications, but also recognise its value to the bottom line.”

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