Reporting market in turmoil.
Wealth reporting. The market for asset reporting and controlling services is changing. "Client requirements are changing. Entire teams from previous top addresses are changing employers. Know-how is now being lost there," Alexander Etterer makes clear. In this exciting environment, the experienced reporting specialist wants to reposition himself. "That's another reason," says Etterer, "why I founded Reportify Analytics."
"Our industry is being turned upside down," says Alexander Etterer, managing partner of Reportify Analytics.
Led by a new, tech-savvy generation, wealthy individuals want to better understand what's happening with their ka-pital with their respective managers and what risks are associated with it. "They no longer see wealth reporting as simply documenting asset accounting, providing regular updates on what has already happened. Rather, it is seen as a central control unit that allows real-time information on recorded assets to be provided, enabling faster action to be taken. This allows better-informed decisions to be made - globally, regardless of location, 24 hours a day, seven days a week," explains Etterer.
However, it's not that simple. "To be able to meet these requirements, intelligent and modern software solutions are needed that make comprehensive use of all the possibilities of automation and digitalization," explains the expert. One of the market leaders in this area is the digital wealth management platform QPLIX. Etterer himself already used the software at the end of 2015 as a "first mover" with his wealthy clients. At the time, this was still in his Wealth, Reporting & Controlling division at Rödl & Part-ner, which now has a wide range of experience due to the diversity of client requirements. "But many others hadn't made the leap into the digital age, or are start-ups, and so most recently sought to buy in expertise in this area."
The staffing merry-go-round in the industry began to spin frantically. Multi-family offices were poaching entire teams and their clients from the top dogs like international tax firm WTS or accounting firm Warth & Klein.
What was less considered in the process:Suddenly, two completely different worlds collided. Above all, the serious cultural differences between auditors and tax advisors, whose actions are accompanied by strict professional principles, and the classic multi-family offices, which are often driven purely by asset management, led to disappointment.
"Many of these reporting specialists are in the process of reorienting themselves, and their employers are then no longer able to optimally use the advantages of modern software for their demanding clients due to a lack of expertise," explains Alexander Etterer and decides to seize this unique opportunity by the scruff of the neck: "We have the know-how, we know reporting tools, for example QPLIX, and their possibilities very well. Now we can even attract many excellent employees. This opens up the chance to build a great company for modern, individual reporting and analysis of all assets."
For Alexander Etterer, this is a big step. Since 1998 he has already been taking care of asset reporting and controlling at the auditing company Rödl & Partner. For the last six years he was responsible for this as a partner. Now he is transferring the business area he managed there into an independent company. The proximity to Rödl & Partner will remain both geographically and professionally.
Reportify Analytics will operate from Cologne as the sole exclusive contractual partner of the auditing company. "We continue to work for our existing clients and clients of Rödl & Partner's tax law succession and wealth management consulting," Alexander Etterer emphasizes the unique selling point.
Etterer's plan now is to implement a unique boutique approach. "As a fully owner-managed company, we have no obligations whatsoever and can operate completely freely in the market. At the same time, we are firmly guided by the historically grown model of the honourable merchant, which characterises our value culture to a particular degree."
A mix of traditional wealth accounting, expert advice and digital innovation are the key success factors at Reportify Analytics. But what makes the company unique is that Etterer has a history of turning the dry topic of wealth reporting into products that no one else in the industry can boast. With his transparency/performance record and transparency report, he makes an opaque industry transparent.
With these tools, the expert is taking the business relationship between investors and managers to a whole new level. "Investors want transparency to understand and compare the investment strategy and results of their asset manager or mutual fund. And client-focused managers themselves have a vested interest in a relationship with their clients that is characterized by openness and transparency. Because that builds trust."
Since 2015, Etterer has therefore been offering banks and asset managers the transparency/performance certificate. Securities transactions from various genuine and anonymised reference custody accounts are regularly submitted by the managers to be recorded using his securities accounting system and evaluated objectively and neutrally. This creates a pool of credible, understandable and bank-independent information on asset management strategies with different investment profiles. "Smart charts and analytics tools additionally clarify the specific strengths of the respective asset manager and allow a look into the engine room," says Etterer.
Of course, this applies not only to private asset owners, but just as much to special fund investors and initiators of mutual funds that target foundations, municipalities or associations with their funds. Thanks to Etterer's transparency report, these semi-professional investors receive a timely and comprehensible basis for the control and monitoring measures required by law.
Of course, voluntary participation in his transparency tools is not without risk for asset managers and fund initiators. After all, below-average performance also becomes apparent in this way. "But anyone who claims to have successful processes and strategies must not shy away from transparency. Participation alone is therefore proof of quality for the respective hospital. That's why we award the 'Transparent Bull' to those who take on the task every year," explains Etterer.
The resulting know-how is the real USP of his new company. "Many can do asset accounting and reporting," explains the founder, "but to then use this as a basis to meet individual and complex customer requirements and develop further tools to give investors more information, understanding and orientation - that's what differentiates us in the market. I've seen it all, what's going well and what's going badly in the wealth management industry. That knowledge is critical to helping protect and sustainably grow client wealth with foresight and responsibility."
Concrete starting points, he says, include finding the right manager in asset tenders or beauty contests. Creating the optimal conditions for intelligent asset management in the asset organization. Or using the information from reporting to set up early warning functions and identify risks in good time.
"All of this must go hand in hand," explains Alexander Etterer and concludes, "Only then can we be a success companion and caretaker in all matters relating to the recording, consolidated mapping and analysis of sophisticated total assets.And that is exactly what Reportify Analytics stands for."
// Reportify Analytics - Success Companion and Caretaker.
With his consulting services, Alexander Etterer aims to create the highest level of transparency, understanding, credibility and comparability of assets - always linked to the goal of identifying risks at an early stage and protecting assets from sustained losses.
// For asset owners
The basis for individual asset reports is asset accounting based on our own figures and data. It enables a digital view of the total assets. In the asset organisation, the structure of the investments is optimised according to individual specifications. The "Analytics" area then ensures that any risks become visible. Then - if the worst comes to the worst - countermeasures can be taken in good time. The market overview also makes it possible to find the most suitable service provider in the event of an asset tender.
// For financial service providers
With the transparency/performance certificate, asset managers have a starting point for their quality assurance.
Public as well as special funds receive with the transparency report a basis for the legally required control and monitoring activities in order to get liability risks under control.
Reportify Analytics Ltd.