DALBAR, Inc. announced the release of its 13th annual Trends and Best Practices in Investor Statements report for Mutual Fund firms. This report evaluates the client statements ability to address the needs of the investor.
In the immortal words of Yogi Berra, Youve got to be very careful if you dont know where you are going, because you might not get there. To understand where you are going, it is essential to establish investment goals and track progress, beyond the obvious retirement goals. At long last, mutual fund industry leaders have recognized and responded by including a clients specific goals on the statement.
SEI has taken the lead in effectively communicating progress toward goals. SEI links each client account with a pre-defined goal. For example, a statement might describe goals such as Second Home or Current Lifestyle. For each client-defined goal, SEI provides a chart that tracks market value, net contributions and target value of the account. Other information that is relevant to the goal is shown next to the chart: the starting date for the goal, value set for the starting date, target date for the goal and value for the target.
By providing investors with the ability to track progress in meeting goals, industry leaders are helping clients turn their investment dreams and visions into the reality that matters most to them said Kathleen Whalen, Managing Director at DALBAR.
This innovation is but one of the key findings of the annual Trends and Best Practices among mutual fund statements. This report provides a ranking of statements, spotlights the industrys best, and summarizes practices that drive positive investor behavior.
DALBAR uses a method of evaluation that has been created and refined over the past two decades. Statements earn credit for including features that strongly impact an investors ability to act prudently and make financial decisions. Features include the ability to understand the significance of the information, answer pertinent questions and utilize design elements that enhanced their overall effectiveness.
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