Time is the most valuable asset and there never seems to be enough of it. While all advisors may be capable of analyzing the performance of a client's portfolio, is it worth the time? Not when there is technology to do the heavy lifting for you. It is estimated that the adoption of sophisticated portfolio management and reporting systems among Registered Investment Advisor (RIA) firms to be between 40% and 60%.1 They also found that firms adopting sophisticated portfolio management and reporting systems experience enhanced operational efficiency and client satisfaction.2
In this guide, you’ll learn how to choose the right software solutions for your practice. We’ll also explore how features like integrations and client-facing portals can simplify your workflows and offer the flexibility you need to deliver the personalized, valuable insights your clients are seeking from their advisors.
3 ways RIAs benefit from performance reporting software
For most advisors, the best use of their time is spent with clients and optimizing their business for growth. Using performance reporting software helps RIAs gain (and keep) a competitive edge by minimizing the manual workload. It streamlines key processes, provides deeper insights for decision-making, and enhances the holistic client experience. With automated reporting and real-time insights, you’ll have the flexibility to focus on what really matters: crafting personalized, effective strategies that drive success for both your clients and your firm.
1. Helps drive decision-making and strategy
RIA reporting software doesn’t just track performance—it integrates with your broader tech stack to create a more complete view of your clients’ financial lives. By pulling data from multiple sources, these tools provide clear visualizations, goal comparisons, and trend analysis that sharpen decision-making. With deeper insights and seamless access to key metrics, advisors can fine-tune strategies, proactively adjust financial plans, and keep client objectives front and center—even as market conditions evolve.
2. Save time on manual work
It comes as no surprise that using performance reporting software lightens your administrative load. Instead of manually gathering performance metrics, advisors can leverage workflow automations to quickly generate individualized reports and use the saved time on more valuable tasks–like refining investment strategies and engaging with clients. This software should also include flexible benchmarking to help provide context to your clients’ overall performance. Through access to real time-data and analysis, updating clients becomes effortless, ensuring more efficient communication and stronger relationships.
3. Facilitate transparent client relationships
Performance reporting software can help facilitate a more transparent advisor-client relationship. Through this relationship, you and your clients can have meaningful goal-setting discussions and create more collaborative relationships, in which clients feel engaged and confident in their financial progress. Even better, look for compatible software that features client portals, giving clients direct and real-time access to performance data.
What to look for in RIA performance reporting software
Now that we’ve covered the why of performance reporting software, let’s get into the what. When evaluating performance reporting software for your RIA tech stack, there are a few things to consider to help save your time and make data-driven decisions that enhance your overall portfolio management and client satisfaction:
- Wealth preservation: Measures how well a portfolio maintains its value against inflation or market downturns, ensuring long-term stability for clients.
- Growth: Tracks the growth of the portfolio over time, considering returns that outpace inflation and market averages.
- S&P 500 benchmark: Compares portfolio returns against the S&P 500 to assess performance relative to the broader market.
- Annualized vs. cumulative performance: Annualized returns smooth out performance over a year, while cumulative performance tracks total growth over time, offering a broader view.
- Risk-adjusted returns: Evaluates performance relative to the risk taken, helping financial advisors determine the efficiency of their strategies.
Essential features of RIA performance reporting software
Now that we’ve covered the why of performance reporting software, let’s get into the what. When evaluating performance reporting software for your RIA tech stack, here are a few things to consider to help save time and drive data-driven decisions that enhance your overall portfolio management and client satisfaction. These features will directly impact your ability to provide personalized, scalable services.
Seamless integration
A strong performance reporting software should integrate seamlessly with wealth management platforms to support account aggregation to provide a holistic view of your clients’ financial lives. This integration should go beyond implementing surface-level data feeds that merely shares information. Instead, look for a deeply functional integration that connects key processes across your practice and RIA tech stack to eliminate manual steps and streamline advisor workflows. This makes data consolidation easier, even with other disparate systems in play, and lets you assess accounts' performance in one place. Integrations can also simplify your workflows, streamline operations, and ensure accurate reporting.
Customizable reporting
Every client’s financial picture is different. While we would love a one-size-fits-all approach to work, that is no longer the case in today’s competitive environment. With mergers and acquisitions in the RIA channel continuing unabated for years, now is not the time to skimp on personalization. Customizable reporting features allow advisors to tailor reports to their clients' specific goals and preferences.
Client access and communication
Your software should provide an open line of communication with your clients. Whether through client portals, or automated email updates, these touch-points are essential for fostering transparency and enhancing the client experience. These features allow clients to access their portfolio data anytime, giving them a sense of control and involvement in their wealth management. If your clients can clearly see their performance and hear directly from you about it, a direct line of trust begins to form.
Envestnet’s RIA reporting software
Modern performance reporting software offers Registered Investment Advisors an easy way to streamline portfolio management and enhance client engagement. Uniting disparate financial systems beneath a single banner, these platforms provide comprehensive views of client data, simplify workflows, and help advisors deliver personalized insights.
See firsthand how Envestnet can elevate your RIA practice at Envestnet.com/RIA.
