Between $2.5 to $4 trillion was lost in the five days of stock market turmoil between August 1 and August 5 last month, according to estimates from portfolio analytics provider StatPro Group

In the wake of such a huge stock market shock, the wealth management community endured huge pressure from their investors, fearful of the market effects on their portfolio holdings.

But investment managers can begin to restore their clients’ trust through the use of technology, said StatPro.

“Technology can help asset managers mitigate the crisis and manage their relationships better in the future,”
said Neil Smyth, marketing and technology director of StatPro Group.

Others agree that more efficient reporting is crucial to help reassure spooked private clients during times of market stress.

“It has become apparent that in times of market turmoil, investors need to access their risk, performance and attribution applications on a more frequent, if not daily, basis. The 2008 crash and the recent market shockwaves have demonstrated that providing investors with rapid and readily digestible performance data is an imperative. The reporting function has therefore once again become a focal point for asset managers,” said Steve Young, head of business development from consultant Citisoft.

But despite the clear need for better reporting at the moment, few private banks come up to scratch. The UK’s Financial Services Authority published a review in June of private banks’ due diligence processes – and found serious failings, much of which comes down to inadequate technology.

Meanwhile, a report published by Swiss research group MyPrivateBanking in July showed that only half of the world’s most prominent wealth managers offer mobile applications for their clients. Only 10 per cent of the 30 providers surveyed go beyond applications related to online banking.

None of the banks surveyed offered a comprehensive mobile application with real time access to a client’s portfolio, said MyPrivateBanking.

StatPro Group is holding a webinar on 29 September entitled Market shockwaves: the demand for interactive reporting, to discuss the effects of market turbulence on investor confidence. To join the webinar click here.