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Mutual Fund Statements Improved in 2004 |
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Wednesday, 26 May 2004 |
Canadian mutual fund investors are receiving statements that are clearer, more readable, and contain more relevant information than they did three years ago, according to findings of Dalbar's 2004 Investor Statement Analysis.
“Companies today are generally using more personal language in their statements – they’re speaking directly to the customer rather than referring to them in the third person. They’re also avoiding legalese and avoiding giving customers information they really don’t need,” said Mark McDonald, Client Relationship Manager of Dalbar's Toronto offices.
Technology is also influencing how statements are delivered to customers. Six of the 18 companies tested are offering their customers the ability to receive their statements electronically rather than through the mail, when none did so in 2001. These companies ensure that their electronic versions are as effective as their paper-based versions, to help maximize adoption rates and cost savings. Some companies even provide an electronic version that is more effective than the paper version.
However, despite the above improvements, Dalbar noted that room for growth exists in the breadth of information that statements provide their readers. For instance, the industry has been slow to incorporate important features such as a percentage rate of return for the portfolio, or an investment commentary.
The Investor Statement Analysis examined statements from 18 Canadian mutual fund firms and used Dalbar's criteria to assign each a score out of 100. Toronto-based Mackenzie Financial Corporation received the highest score, at 79.25. Investors Group, AIM Trimark, and RBC Asset Management also produced statements that ranked in the top quartile.
Dalbar, Inc. is a leading financial services research firm with offices in Toronto and Boston, specializing in measuring the performance of institutions and financial professionals in areas such as client satisfaction, service quality, and communications effectiveness.
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