DALBAR Canada’s 2020 Trends & Best Practices in Investor Statements: Identifying Leaders in Mutual Fund, Segregated Fund and Retirement Statements
We live in a world overloaded with information, making it crucial for businesses to offer clients the data they need in a clear, concise, and timely manner. In order to successfully meet the needs of clients, financial institutions must gain a thorough understanding of what investors are seeking in terms of their financial statements.
To help financial institutions with this, DALBAR surveyed Canadian investors and compiled a detailed review of effective investor statements in the 2020 Trends & Best Practices in Investor Statements: Identifying Leaders in Mutual Fund, Segregated Fund and Retirement Statements study.
Investor Statement Preferences Highlights
DALBAR Canada surveyed a diverse group of Canadian investors to gain a better understanding of investor preferences.
The results of the poll provide important insights into the emphasis that investors place on specific statement features, such as detailed graphs or paperless electronic delivery, and these findings highlight key areas for financial institutions to consider when improving their statements.
The DALBAR study provides exclusive access to best-in-class samples of financial statements from various Canadian institutions in different industries: mutual fund, segregated fund, and retirement. To determine which firms qualified for the DALBAR Communications Seal of Excellence, DALBAR Canada ranked the firms on how comprehensive, intuitive, and appealing their account statements were, and how well these statements aided clients in understanding and managing their investments.
The study highlights key elements that have proven to be successful in catering to specific groups of investors (mutual fund, segregated fund, and retirement). These examples, which feature detailed summaries and easily understood language and explanations, provide valuable insights into effective updates that institutions can emulate in their own financial statements.
By incorporating similar statement features or undertaking statement redesigns, as inspired by the comprehensive samples included in this 2020 report, firms would be able to meet client needs and expectations while also reducing expenses, such as statement-related spikes in call centre activities.
Trends from the US Industry
The 2020 Trends & Best Practices in Investor Statements study also carefully analyzes strong trends emerging in the realm of finance in the US and discusses their applicability to the industry in Canada.
While not typically highlighted in financial analyses, factors relating to Environmental, Social and Governance (ESG) investing (also known as Socially Responsible Investing [SRI] or Sustainable Investing) have recently become more prominent in client-reporting practices. There is keen interest from investors in how well corporations are managing their resources and supply chains, how ethical and safe their work policies are, and whether they have a corporate culture that fosters innovation.
As investors increasingly use ESG to decide where to put their assets, more companies have been adopting ESG policies. The report showcases examples of how American firms are doing so at the moment.
The investor statement is often the only personalized document investors receive from their financial firms, making it a powerful servicing tool in communicating with investors. For an in-depth understanding of how you can make your firm’s mutual fund, segregated fund, or retirement statements an effective tool, DALBAR’s 2020 Trends & Best Practices in Investor Statements analysis is an excellent resource. For more information on this report, please reach us at firstname.lastname@example.org.