In today’s digital-first investment landscape, how firms communicate with clients is becoming just as important as performance itself. Investors demand fast, transparent, and tailored interactions.
Communication Is the New Competitive Edge
According to ThoughtLab and Morningstar research, over two-thirds of investors expect digital experiences on par with those offered by born-digital companies. In this environment, portfolio reporting is no longer just a regulatory checkbox, it’s a key differentiator.
Clients want clarity on how their money is managed and why specific investment decisions are made. They want explanations that reflect their individual circumstances and preferences, not one-size-fits-all summaries. Yet traditional reporting formats, static PDFs or manually crafted factsheets, often fail to deliver this level of engagement. The gap between data and dialogue has never been wider, and the firms that close it stand to build stronger, longer-lasting client relationships.
From Static Reports to Automated Personalized Narratives at Scale
This is where StoryFolio, a feature of MDOTM's AI Platform Sphere, comes into play. Designed by MDOTM to solve the communication gap at scale, StoryFolio leverages a Controlled Generative AI architecture to transform raw, structured portfolio data into high-quality, human-sounding commentary. It’s more than just automated text generation: each narrative is aligned with the portfolio’s unique strategy, the firm’s investment logic, and the client’s specific profile—be it risk tolerance or allocation constraints.
StoryFolio operates through two core methodologies. The top-down approach builds narratives starting from the strategic or tactical asset allocation, contextualizing portfolio exposures within the firm’s broader market view. Meanwhile, the bottom-up approach focuses on individual instruments and positions, explaining the reasoning behind each trade or holding—particularly useful in portfolios with personalized mandates or where preferences outweigh centralized views. This dual logic allows the system to adapt dynamically across advisory services, discretionary mandates and model portfolio strategies.
At every stage, a proprietary coherence layer filters, prioritizes, and structures the information, ensuring that the commentary is relevant, compliant, and aligned with both internal frameworks and client expectations. Unlike traditional generative AI models, StoryFolio doesn’t hallucinate or rely on external, unverified sources—it builds narratives only from structured internal data.
Empowering Every Use Case, Across the Value Chain
The power of StoryFolio lies in its flexibility. In advisory services, where the client has final say over portfolio changes, this feature enables advisors to generate on-demand proposals with full explanations of each recommendation—tailored to the client’s constraints and preferences. This level of customization helps justify advisory fees in a market increasingly dominated by low-cost passive alternatives.
In discretionary mandates, StoryFolio ensures that clients still receive transparent communication, even if they’ve delegated investment decisions. Whether the portfolio is benchmark-tracked or risk-profile-based, the tool automatically produces commentary that reflects the rationale behind the manager’s actions and how those choices align with the client’s objectives.
For model portfolios, StoryFolio supports distribution by creating tailored commentary that advisors can use directly with clients—reducing the content creation burden for asset managers and giving RIAs and intermediaries the tools to communicate with confidence and consistency.
And in fund reporting, the platform automates one of the most labor-intensive tasks: generating factsheet commentary and fund updates across hundreds of products and audience types. Instead of involving portfolio managers, analysts, and marketing teams in a time-consuming content process, StoryFolio delivers technically sound, branded, and timely output—ready for publication.
Turning Reporting from Bottleneck to Strategic Asset
Historically, reporting has been an operational bottleneck—manual, time-consuming, and difficult to scale. But the stakes have changed. Personalization is now the baseline, not a bonus. Clients want tailored explanations, and firms need to deliver them consistently, across geographies, asset classes, and product lines.
By combining automation with customization, StoryFolio transforms reporting from a resource drain into a growth enabler. Advisors and portfolio managers can focus on value-added activities, while clients receive more insightful, transparent, and timely updates. Reporting becomes an extension of investment strategy, not just a post-trade task.
StoryFolio integrates seamlessly with portfolio management systems via API or SFTP, enabling real-time or scheduled commentary generation. Outputs can be formatted in PDF, Word, Markdown, or Excel—ensuring compatibility with any communication channel.
Portfolio reporting is evolving from static disclosures into dynamic client conversations. As client expectations rise and operational complexity grows, Generative AI offers a scalable way to meet both. With StoryFolio, asset and wealth managers can deliver the kind of communication today’s investors demand—personal, data-driven, and human. Not as an added cost, but as a strategic asset.
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