Maximise your global reach: The essential expert advice for mastering cross-border fund factsheets

As asset managers expand their global footprint, they face increasing pressure to reduce costs, ensure regulatory compliance and manage the complexities of multilingual document production. In a recent FE fundinfo webinar our experts shed light on the challenges and solutions surrounding cross-border fund factsheets - a critical tool for reaching clients across the EU and beyond.

The Challenges of Production at Global Scale

Downward cost pressure and increasing regulation are just a few of the factors threatening asset managers’ long-term profitability.

Joerg Grossmann, Chief Product Officer of FE fundinfo explained the almost-existential problem: “It’s no longer a given that market performance is going to support asset calls, which obviously has an impact on the profitability of asset managers. New asset flows are also declining, and ever-increasing regulation is leading to increased cost of doing business.” 

Facing mounting pressure to distribute their funds to an increasingly competitive global market, asset managers must accept an extra layer of administrative work. “If you want to broaden your international footprint from a distribution perspective,” said Grossman, “You have to adjust your offering to the local market needs.” 

Each fund and each share class must have its respective factsheet, translated appropriately for each language in each country - delivered to the distributor in a timely fashion.

Five Must-Haves for Modern Factsheets 

Regulators have standardised requirements for factsheets at the industry level. And each jurisdiction requires localisation. Factsheets at scale must meet the following requirements.  

1. Accuracy

A factsheet is worthless without accurate data. Failing to prioritise accuracy poses huge reputational risk for asset managers.

2. Compliance

With varying requirements across different jurisdictions, factsheets must meet all necessary standards. Meeting varied jurisdictional requirements, including emerging ESG factors, is essential.

3. Localisation 

Beyond translation, factsheets must be culturally attuned to each target market. Grossmann explains his experience as a fund distributor in Switzerland, where he required factsheets in 4 distinct languages to serve clients in that multi-lingual country. 

4. Scale 

The number of factsheets to produce rises with every fund, every share class, and every language. 

5. Timeliness

Distributors expect factsheets to be delivered consistently and on time. Having worked on the distribution side of the investment industry, Grossman shared what’s at stake for asset managers who failed to update or localise their factsheets:

How to Approach the ESG Imperative

Drawing on our extensive ESG experience, we recommend a data-provider agnostic approach that prioritises clarity and accuracy. As regulations evolve, it's crucial to present information accessibly for all investors, including those without technical expertise.

Focus on essential metrics, such as overall greenhouse gas emissions, rather than complex distinctions like Scope 1, 2, and 3. Ensure accurate calculation methodologies, but stick to the base reporting requirements. For those needing more detail, create separate, specialised reports for institutional clients or those seeking more in-depth analysis.

This balanced approach to fund factsheets provides relevant sustainability data without compromising clarity, meeting both regulatory needs and investor understanding.

Technology Driving Factsheets Forward

Ultimately, the success of a fund hinges on speed to market. With both regulatory expectations and distribution complexity on the rise, automation can actually reduce the cost of production, especially when you choose a partner that meets the multi-faceted demands of modern cross-border fund factsheets. 

“Data is the DNA of FE fundinfo,” said Nick Moore, FE fundinfo's Head of Business Development UK Asset Managers, who explained how FE fundinfo collects and validates data to render the factsheet with pinpoint accuracy, using both proprietary and vetted third-party sources to form of “golden source” of data. 

As a trusted solution provider to 4/5 of the top global asset managers , FE fundinfo has both the data and the technology to automate 100% of the workflow and relieve the administrative burden from translation to distribution. Today we produce 150,000 documents every hour for a customer base that comprises both boutique and enterprise firms. 

Features that Make the Difference 

• Scope management: Automatically identifies which funds, share classes, and languages require factsheets.
• Narrative management: Dedicated narrative UI offers full transparency and customisation of narratives at various levels – from umbrella verbiage to share-class specifics. 
• Template builder: Creates bespoke templates for funds, share classes or asset classes. 
• Automation: Our tools use data readiness and data validation to automate production to maximise accuracy and timeliness. 
• Dedicated dashboard: Offers visibility to the entire process from draft to review to publish. 

FE fundinfo's Fund Information Hub serves as a gateway to these comprehensive services and more, offering an intuitive interface for monitoring, controlling, and producing essential fund documents.

The Future of Factsheets 

Speaking from decades in the industry, Grossmann offered advice for asset managers:

They’re your fund factsheets. FE fundinfo can help you bring them to life in an accurate, timely, and fully customised manner. Because in the fast-paced, global financial environment, mastering the art and science of factsheet production is no longer optional. 

Learn more about FE fundinfo’s Factsheet Production solution and book a demo now.