Pershing Research Finds Investors Lacking Critical Information About
Their Financial Well-Being
Inc., an affiliate of Pershing LLC, a
released a new white paper entitled, "Democratizing the Rate of
Return: Real-time Portfolio Performance and Risk Reports for all
Investors." Most notably, the research suggests that financial
professionals are not providing investors with a comprehensive picture
of their financial well-being.
According to the paper, when formulating a financial plan, an
investor's current position is assessed, goals are set, an action plan
is put into place and a quarterly report is produced providing
investment performance against historical values, benchmarks and
peers. However, these reports fail to tell investors how
theirinvestments and their personal inflows and outflows are
performing in the face of market fluctuations and economic volatility.
Investors are lacking an accurate and complete picture as to how, or
even if, they are achieving their financial goals.
"Investors are demanding greater information about their investments
from their investment professionals and when that need is fulfilled,
we find it actually increases investor confidence," said Gregory
Pacholski, chief executive officer of Albridge Solutions. "The
prevailing fear that providing investors with too much information in
a down market will cause them to reconsider their investment is simply
One primary goal of an investment professional is to manage as much of
an investor's wealth as possible. According to the paper, by providing
a personalized, comprehensive view of an investor's entire portfolio,
investment professionals can make more informed and tailored decisions
for each investor based on timely data. The data shows that as trust
between the investor and advisor increases, an investor may allow
management of a greater amount of household wealth.
Pacholski added "Providing investors with a holistic report of their
investments could sound like a costly offering. Investment
professionals need to know that there are cost-effective solutions on
the market that provide customized data reporting, such as our
Albridge solution, which provides investors with a personalized rate
The paper offers insights and strategies for investment professionals
to gain and retain clients in this growing on-demand investing
environment. Other key insights include the following:
— Investors are demanding more sophisticated, transparent,
personalized performance data, regardless of portfolio size.
— Providing money-weighted return reports provides investors with a
more accurate and complete investing tool, building a deeper level of
confidence and trust.
— According to the 2010-2011
wealthy individuals want "greater transparency" from their financial
institutions. Similarly, 77% of respondents said information and
technology integration allows them to better manage their investments.
To obtain a copy of the white paper, Democratizing the Rate of Return:
Real-time Portfolio Performance and Risk Reports for all Investors,
Albridge Solutions, an affiliate of
provider of enterprise solutions, custom technology and business
consulting services to institutional and retail financial
organizations and independent registered investment advisors. Albridge
draws upon its financial services experience and technology expertise
to help financial organizations enhance their operating performance
and maximize their productivity. Albridge's wealth management
technology consolidates and reconciles client account information from
hundreds of data sources that represent banking, brokerage, insurance,
retirement, managed accounts and more.
financial business solutions to more than 1,500 institutional and
retail financial organizations and independent registered investment
advisors who collectively represent more than five million active
investors. Located in 23 offices worldwide, Pershing and its
affiliates are committed to delivering dependable operational support,
robust trading services, flexible technology, an expansive array of
investment solutions, practice management support and service
excellence. Pershing is a member of every major U.S. securities
exchange and its international affiliates are members of the Deutsche
Additional information is available at pershing.com.
clients manage and service their financial assets, operating in 36
countries and serving more than 100 markets.
provider of financial services for institutions, corporations and
high-net-worth individuals, offering superior investment management
and investment services through a worldwide client-focused team. It
outstanding debt and processes global payments averaging
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