The Management Report of Fund Performance (“MRFP”). It’s a report that’s often, and quite appropriately, viewed as a regulatory document. But it can be so much more.
MRFP commentaries can also be a story from the fund’s past to help explain its future.
You know the format: the macroeconomic environment, performance versus the benchmark (including contributors and detractors), trading activity and current positioning. All of these are vital components from a regulatory standpoint.
Share vital information
But maybe more importantly, they are also vital pieces of information for advisors and investors. Advisors want to ensure that portfolio manager objectives and strategies are aligned with their own and those of their investors. Certainly not an unreasonable ask.
Advisors want to ensure that portfolio manager objectives and strategies are aligned with their own and those of their investors.
With so much choice in the industry these days, advisors are tuning into the objectives, strategies and processes of portfolio managers to ensure their recommendations are the right match for their clients.
Speak directly to investors
How can you help inform advisors and investors? By looking at MRFPs not only as regulatory documents but also as a chance to speak directly to investors.
Whether your fund outperformed or underperformed, if you give investors a well-integrated story about why the fund performed as it did, you can build a strong and long-lasting relationship with the investor.
You can build a strong and long-lasting relationship with the investor.
So put additional effort into it and explain what sectors, geographic regions and individual holdings contributed to and/or detracted from performance.
More importantly, explain why these sectors, regions and holdings performed the way they did. Those are the insights investors can’t get elsewhere but should always have available in their funds’ MRFPs. Including this information shows investors that you are working towards your objectives, following your strategy and executing on your process.
At their most basic level, MRFPs are regulatory documents. But they are also an opportunity to speak directly to investors. Don’t pass on the opportunity to tell these investors why your fund is the right option for them.
For investment commentary support (including monthly and quarterly commentaries, as well as MRFPs), contact us today at 416.925.1700, 844.243.1830 or firstname.lastname@example.org.