The tax closing period is a missed opportunity for the majority of wealth management professionals to strengthen their relationship with investors. Advisors can free up time for more meaningful discussions with clients by presenting modernized, easy-to-understand reports before their meeting
Start-of-year reports must present certain data to ensure impeccable compliance. However, this routine can be much more than a simple balance sheet exercise and a regulatory formality.
By presenting clear and personalized reports, advisors can maximize their client meetings and take the discussion beyond numbers to the more fruitful ground of life goals. Yet, only 13% of wealth management firms personalize their communications with investors.
The obstacle to this personalization of reports is often technological. Most report generation tools that allow you to do them at scale are rigid and superficial. Advisors are often forced to settle for minimal regulatory requirements, sacrificing client understanding for the sake of operational efficiency. This is also an issue raised in the Canadian government's National Financial Literacy Strategy 2021-2026.
For several years, WealthTech company Croesus has positioned itself as the champion of wealth management reporting in Canada.
"Our reports are customizable, compliant, and based on precise calculations, at scale. We also recently launched a new AI-powered personalized video report solution to further promote investor understanding," says Raffi Missakian, Client Relationship Manager at Croesus.
7 key elements to increase client engagement
To help wealth management professionals take advantage of the new year period to position themselves as essential partners in achieving their clients' life goals, Mr. Missakian suggests five essential reports:
1. Custom commentary
This function allows the advisor to insert personalized, free-form documents such as a market commentary letter, team updates, or strategy memos, directly into the client's final report package. While not a report in the traditional sense, it serves as the crucial narrative layer that bridges the raw data with the client's unique context.
"For all clients, especially those who may be less focused on the granular details and more on the big picture, this added commentary provides the reassurance and context they need," says Mr. Missakian. "It's the ultimate tool for turning paperwork into a conversation by preemptively answering the client's key questions about why the numbers look the way they do."
2. Realized gains and losses report
This report provides a precise overview of taxable events, which is essential for alignment with tax requirements.
"It serves as a key tax optimization tool that allows you to initiate the dialogue on the previous year's investment strategy. By presenting this data, you contextualize the year's decisions and offer a proactive vision of the portfolio's tax suitability," says Mr. Missakian.
3. Security income analysis report
This report details the origin of cash flows, dividends, and interest generated by each security.
“For clients who depend on portfolio income, this report is more important than capital performance. It reassures investors about the solidity of their income strategy and clearly distinguishes non-capitalized growth components,” says Mr. Missakian.
4. Portfolio performance report (Time-weighted return)
Whether periodic or time-weighted, these reports measure the return of a portfolio, positions, or individual accounts over defined periods, offering a detailed and historical view of value evolution.
According to Mr. Missakian, the time-weighted performance report is the backbone of communication with the investor.
“This report tells the story of value creation over time. The ability to calculate and show returns from the moment of acquisition offers concrete proof of the portfolio's alignment with the client's long-term life goals, beyond generic benchmarks,” says Mr. Missakian.
5. Portfolio Performance report (Periodic)
The periodic performance report is the tool used to manage expectations and stay on course during inevitable market turbulence.
“By breaking down performance over specific periods, such as monthly or quarterly, this report allows for engaging conversation about the necessity of a long-term perspective,” says Mr. Missakian.
6. Income report
This report offers a quick and clear summary of the total income received, including interest and dividends.
“This is an essential supplementary report that supports budgeting and income declaration needs, simplifying the information for the client. It offers a fundamental overview of the portfolio's direct return,” says Mr. Missakian.
7. Document summary
For a frictionless tax reporting season, Mr. Missakian recommends integrating a document summary report. It acts as a smart table of contents, ensuring organized and professional navigation to prevent the client from being overwhelmed by the data.
The technology factor
These seven elements form the basis of the tax closing package, according to Mr. Missakian. However, the situation of each firm and each investor is unique. This is why Croesus Advisor offers over 100 compliant and customizable report templates. The accuracy and range of the solution is recognized as the reference in portfolio management reporting in Canada. The adoption of such an advanced solution is what separates a compliance report from a true client experience.
"Beyond the results, the investor's real concern is whether they will be able to achieve their life goals. By offering them personalized reports they understand, you respect their time and set the stage for a conversation that will focus not on explaining the reports, but on the goals that are so dear to their heart," says Mr. Missakian.
This is precisely what Croesus Vidia offers. This solution converts personalized data contained in Croesus Advisor reports into dynamic video summaries, allowing the advisor to comment on essential information such as market movements, allocation changes, or upcoming opportunities.
Studies show that investors retain 9.5 times more information from a personalized video and are 75% more likely to watch it than to read a detailed PDF.
This article was produced in partnership with Croesus
