INTRODUCTION
Investment commentaries are an extremely important form of communication between investment firms and investors. Firms use investment commentary to present an in-depth analysis and report of a fund or portfolio’s performance. Therefore, it is essential that investors can glean as many insights as possible from a report or commentary. Well-written and engaging investment commentary helps firms and investors review fund performance and investment strategy, and improves improve communication and trust between all parties.
So how do you write compelling investment commentary? Listed below are some essential guiding points that can help you achieve your goal.
Guide To Crafting Compelling Investment Commentary
Clear outline or theme: Firstly, investors need to be able to gain a clear understanding of the outline message or theme of an investment commentary. What is the reason for the report? Is the report a general overview of a portfolio or focused on one particular sector? Is it meant to offer a long or short-term perspective or both? Always remember to keep the core message and theme of a commentary at the heart of your presentation.
Remember Your Audience’s Perspective: To craft an effective investment commentary, it is imperative to keep the audience’s perspectives in mind. What kind of questions or concerns would a client have? What was the financial goal that was promised to investors? What details would be deemed most important by investors? Answering these questions helps write a compelling investment commentary that can strengthen firm-investor relationships.
Assess The Industry: The investment market is all about timing and opportunity. Further, it is a volatile environment known to contain unpredictable trends and behavior patterns. In such an environment, an investment report should strive to integrate the condition of the investment industry into its findings. Firms can highlight the state of the investment market as a way to offer perspective on some of the factors driving performance. Benchmarks can help a firm convey to investors if a portfolio is performing well as per industry standards.
Visual Representation: Infographics, charts, and tables make an investment commentary more compelling. Since the primary task of an investment commentary is to educate readers, including visual aids helps make information more accessible to readers.
Create a Coherent Structure: Good investment commentary writing entails that a report is coherent and comprehensive from start to finish. Arranging all the key information in a readable manner permits an investment commentary to have maximum impact on its readers. While arranging your investment commentary, remember to identify the most noteworthy points to keep readers engaged. Ensure that there is a logical flow and that you use visual aids at the most appropriate times to help cement conclusions and findings.
Avoid Information Overload: A well-crafted investment commentary highlights important points without overloading the reader with information. When writing the various sections of the important, it is important to stick to the topic and share only what is needed. Firms should also minimize compliance and legal feedback, and stick to an analysis of key performance indicators as much as possible.
Thoroughly Review Your Report: Presenting a grammatically correct and error-free commentary is as important as capturing the key points of a commentary. Hence, proofreading and editing are important final steps to ensuring an investment commentary is ready for sharing. Additionally, it is important to double-check that all statistics and insights provided are accurate.
CONCLUSION
A compelling investment commentary must effectively and efficiently communicate the performance of a portfolio to investors. Doing so maintains trust between firms and investors, and enables the relationship to strengthen.
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In a well-crafted investment commentary, the outline message and theme of the commentary should be clear. An investment commentary should be from the audience’s perspective and should work to assuage any questions they may have. A commentary should offer key insights such as, are financial goals on track? Are there any trends, opportunities, and risks that are present? Further, the representation of data in an investment commentary should be clear and concise, with visual aids to help readers. Finally, an investment commentary should be a well-structured report that contains no mistakes and highlights the most relevant details.
