Pershing Research Finds Investors Lacking Critical Information About Their Financial Well-Being

April 4, 2012

JERSEY CITY, N.J. — Albridge Solutions, Inc., an affiliate of Pershing LLC, a BNY Mellon company, today 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 their investments 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 unfounded."

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 of return."

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 PNC Wealth and Values Survey, 74% of 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.

 

About Albridge

Albridge, an affiliate of Pershing LLC, is a leading provider of enterprise data management solutions that deliver a single view of an investor's broad range of assets. Our proprietary technology consolidates and reconciles client account and transaction data from hundreds of data sources representing banking, brokerage, insurance, retirement, managed accounts and more. Albridge processes this cleansed data and uses it to power a variety of downstream technology solutions, including performance reporting, sales practice monitoring, data warehousing, business intelligence, imaging and workflow. Albridge provides the foundation for financial organizations to leverage a single source of information to power a number of mission critical technology applications. Additional information is available at albridge.com.

About Pershing

Pershing and its affiliates provide global financial business solutions to advisors, asset managers, broker-dealers, family offices, registered investment advisor firms and wealth managers. A financial services firm located in 23 offices worldwide, Pershing provides business-to-business solutions to clients representing 6 million active investor accounts on the U.S. platform. Pershing affiliates are members of every major U.S. securities exchange, and its international affiliates are members of the Deutsche Börse, Australian Stock Exchange, Irish Stock Exchange, London Stock Exchange and Toronto Stock Exchange. Pershing LLC (member FINRA/NYSE/SIPC) is a BNY Mellon company. Additional information is available on pershing.com, or follow us on Twitter @Pershing.

About BNY Mellon

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of June 30, 2016, BNY Mellon had $29.5 trillion in assets under custody and/or administration, and $1.7 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.