Indeed, wealth management is moving to a conversation around target objectives for an investor’s life goals through the use of goal-based financial planning tools, noted Deborah Repak, managing director of products at First Rate.

“However, there are few client reporting options available in the market to communicate how well the client is progressing toward those goals as opposed to a market index,” Repak said.

According to CEB Wealth Technology, nearly seven in ten high net worth clients do not have a formal financial plan for achieving long-term goals. And, of those who do, most would prefer to see their overall wealth management progress in the context of their goals.

First Rate believes the findings are a “strong endorsement” for advisors to incorporate goal-based reports into investment conversations, linking together financial planning, portfolio management and client reporting.

“As the industry accepts that more clients judge the success of their portfolios based on their life goals as opposed to just benchmarks, firms will need to adjust the way they demonstrate value,” said Darrin Courtney, research director at CEB Tower Group.

“Firms are aware of this however, as demonstrated by a recent survey of senior wealth executives about preferred features in a client reporting solution, where the vast majority chose the ability to tie performance to individual client goals as the most important requirement,” Courtney added.

The new goals-based reporting tool is now one of over 100 report schedules offered by First Rate.