Management reports for investment funds provide investors with the information they need on their investments. They include investment objectives, holding details, costs and performance among other things. Reporting in detail is essential for keep existing clients happy and to attract new ones.
Many trusts, investment managers and family offices use different methods to manage and track their assets. Some individuals utilize Excel spreadsheets, whereas others utilize specialized software to track their money. Whatever method is employed, it’s important to have the appropriate technology in place to ensure that the appropriate information is collected and delivered at the right time.
In the ideal scenario, directors of investment funds should be provided with information and data that allow them to assess the adequacy of fees and expenses, including those relating to the selection of portfolio securities. The independent directors of the fund should also be able review materials prepared by experts outside for evaluating the quality of services contracts and fees.
To meet these broader requirements to address these needs, the Commission should consider whether it’s appropriate to require certain fee-related information, expressed in dollar amounts to be included in fund statements on accounts. Shareholders could also compare their fees to other funds and receive personalized information.