What are the Guidelines to Keep in Mind When Writing a Fund Commentary?

What are the Guidelines to Keep in Mind When Writing a Fund Commentary?
What are the Guidelines to Keep in Mind When Writing a Fund Commentary?

Every registered rep needs to share fund commentary with prospects and clients to show its strength in the past and the future. It is a factual, unbiased report of its collective investment vehicles, including hedge funds and mutual funds. Creating a convincing commentary helps achieve financial goals in a compelling yet less painful manner. However, what guidelines one must keep in mind when writing this document?

Below, we share the guidelines to improve the effectiveness and quality of a commentary.

Early Collection of Materials

Many companies start thinking about writing a commentary only after the quarter ends. However, the best way is to start gathering materials and ideas as soon as the last quarter ends. Store them at an accessible location along with all the files and links. 

Analyze the concerns and queries from prospects, referral sources, and clients and plan to resolve them in the subsequent fund commentary. Focusing on these queries makes the piece compelling and helps convert casual readers into clients. Refer to some third-party reports and improvise to make them relevant to the audience. For instance, describe how their market observations affect retirement investors or asset allocations.

Ideas Organization Before Writing

Organizing ideas before writing lets the words flow efficiently and require minimal editing afterwards. It’s crucial to recognize patterns in the information and use them as a blueprint for the commentary. While organizing and reviewing the ideas, keep one thing in mind “is it relevant to my readers?” Let this theme run all across the piece.

Understanding Audience

The readers must understand the commentary to solve any purpose or use. Distinguish professional advisers from big institutional clients and understand the differences between them. Try writing a report inclusively instead of doing a cut-and-paste job to write the draft. For instance, a credit-spread duration explanation sounds disdainful to a high-scale pension investor, a reminder to a financial adviser, and too complex to include to a retail consumer. Therefore, understand the audience and devise the commentary accordingly.

Early Draft Writing

Writing commentary before the quarter-end avoids any last-minute crunches. Most of the time, views are less likely to change in the last week before publishing the paper. However, updating the statistics at the last minute is a considerable step. Even if something changes, there is time to mull over them sooner.

Apart from time management, early draft writing allows ideas to get stronger. There is enough time to explain concepts and refine the commentary before publishing it. Catching errors and weaknesses, copyediting, and proofreading are also possible when sufficient time is on hand. The key is to write the draft with a human mind, not like a marketing machine.

Editing, Proofreading and Managing Compliance

Spotting weakness in their own work is hard for all. Therefore, sending the commentary to a friend, colleague, or editor for proofreading and editing is better. They may help identify unclear, ungrammatical, and uninteresting parts in the fund commentary. If there are no outside resources, one may rely on word processing software to check the text and catch problems.

Identify the hot buttons of compliance professionals and give them a detailed disclosure. Those who know this beforehand will avoid mentioning them or giving relevant disclosure to go. Compliance professionals treat those better who demonstrate their understanding of the issues.

Increasing its Efficacy

The commentary must be relevant to the asset manager’s specialization using industrial reviews, fund examination, and ongoing current affairs. Including current industry situations, potential growth prospects, and macroeconomic reviews will build the stage for a realistic commentary. Rather than making manipulating statements, the report must be solution-oriented and optimistic.

Sharing the Commentary

Sharing the commentary with as many people as possible will help derive the most significant benefit from it. Instead of waiting for the readers to find it, share it in client statements, send it in e-newsletters, and publish it on websites. Consider sharing links on social media as far as the compliance standards allow. Give it a provocative or interrogative headline to attract more eyeballs. The proper commentary writing process deepens a company’s relationship with referral sources, prospects, and clients.

Writing a company’s fund commentary is crucial to showcase its position and abilities in the market. Keep the guidelines mentioned above or engage a team of experts to create a compelling commentary and take it a notch up.

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