When a client invests in a fund, they don’t invest in the assets that are managed, but in the fund manager’s knowledge, expertise and performance. This is why keeping your clients in the loop about the latest investments and performance is of utmost importance.
In March this year after we saw the liquidity squeeze bringing the prices across all asset classes (including crypto) down in double digits, people got scared and started to request withdrawals. This further deepened the liquidity problem and for some even posed a solvency issue, even though the funds experienced growth in their profit margins in the accounting period.
The majority of current solutions focus on the fund managers’ side for keeping track of their crypto holdings, while the clients usually get notified in periodical reports. These might not be frequent enough to satisfy your clients’ curiosity and the need for updates. As a fund manager, by having your investors informed round-the-clock on the portfolio’s performance, you can increase transparency and trust. This is important as it ties with the old way people do business – we need to know, like, and trust someone before we can engage with their products, goods or service.
Every investor’s concern is that they are going to lose money. This is why they would rather entrust it to a professional with a long history of success managing funds, instead of attempting to make a profit themselves. In the cryptocurrency market, this is even more so as the market is still in its early stages and the sheer level of change can be overwhelming, particularly for a newcomer.
Crypkit can help bridge the information gap between fund managers and investors with one key distinct feature – a third party data sharing function that comes with a unique link.
Do you want your investors to see their NAV and performance 24/7? It’s simple. Set up Limited Partners’ accounts and send them their login credentials. They can access personalized dashboards anytime they want.
The dashboard brings the below benefits for your clients.
It enables transparency
One of the ways fund managers can increase their investors’ trust is through promoting transparency. By being well informed about the investment processes and how their equity is valued at each point, investors and clients can stay assured that their funds are in good hands.
Much like the blockchain is a public ledger on which you can see all the transactions throughout its history which revolutionized the need to trust a central authority, Crypkit enables the same property. Investors can easily track their deposit, how they have been used, and how they fit into the whole pie.
Crypkit puts the investors at the center. The investment process appears to be no different than individually investing in cryptocurrencies and tracking one’s portfolio.
Most of the time investors can only see how the fund has collectively performed but that more often than not doesn’t relate to their particular investment. With Crypkit, you can show your client how their particular portfolio is performing. This way, the investor does not have to calculate or track the performance of their deposits on their own.
Transparency between the fund and the investor is best ensured through real-time tracking of the portfolio’s performance. As the platform enables you to bring in your clients into the dashboard they can see in real-time how their deposited funds are performing. This brings us to the next benefit.
It saves time
Although it would still be a necessity to produce reports on the latest fund performance the 3rd party sharing feature will definitely save time in the client management process. Since the client can track how their investment and the fund is performing 24/7, the number of hours needed for having phone calls, conference meetings and producing reports decreases.
In addition to a friction-less deposit/withdrawal process which is also highly important for increasing investors’ trust, it will put your clients at ease and feel like they have complete control over their investments which is what they have been looking for from the very start.
A positive user experience that can be accomplished by this solution will have your clients feeling like you as a fund manager and your funds is a filter of expertise between their funds and their investment goals. This is a drastic improvement to a more traditional approach where clients feel like they have forfeited their capital and are now left in the dark until further notice.