Investment reporting faces a particular challenge with structured products (Struki), as these often have complex constructions and non-transparent costs. The focus is on the comprehensible presentation of risks and opportunities as a basis for decision-making. This article shows what is important in investment reporting, especially in connection with structured products.
The Investment Report is the instrument for regular communication about the investments to the investor. Primarily, it should show what has happened in the reporting period and what the current condition of the assets is. With this, he gives an account. Secondarily, it should prepare information that can be a suitable basis for future decisions. In this way, it provides a basis for decision-making.
With structured products, both issues – accountability and providing a basis for decision-making – are particularly difficult.
From a purely legal point of view, the reporting obligation is fulfilled with the transaction list and the current securities account balance. The goal, however, must be to explain to the investor in an understandable way how the current situation came about. That is the question of the causes. With structured products, one speaks less of causes and more of (market) events, for example when a barrier has been touched. These events have financial consequences for the investor.
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