Given current market conditions, performance measurement and analysis are crucial for investment management firms to differentiate themselves. Investors demand deeper insights into performance, requiring investment managers to report on the contributors and strategies behind performance results.
With rising fee pressure, it is important for firms to demonstrate the value of active management. Firms need advanced, specialized technology and skilled professionals to analyze performance, identify trends, and inform better decisions. Yet, disparate systems, data silos, and clunky processes often stand in the way, which means performance measurement teams spend excess time on operations at the expense of analysis and value-added activities.
Delivering accurate and actionable insights
Performance professionals must deliver accurate and insightful results to guide their firms in a fast-paced market. Technology is available to accelerate this process and enhance performance data quality, providing a deeper understanding of results across the firm to everyone who needs to know. Several aspects are essential, including:
- A powerful, flexible performance and attribution calculation engine that supports standard and custom calculation methodologies, regardless of complexity, with the scalability to run, validate, and integrate calculations across thousands of portfolios.
- Sophisticated analytics and modeling tools that offer diverse attribution methodologies and risk analytics, supporting varied asset classes, including private markets, and enabling custom models and deep performance insights.
- User-defined dashboards to empower portfolio managers and other front-office users with self-service and ad hoc reporting capabilities, so the amount of time performance teams spend preparing and distributing various reports is reduced.
- Robust automation across data management, calculations, and reconciliation reduces manual tasks and saves time. Exception-based workflows and automated data quality checks leave performance teams with a much smaller data set to check – and more time to concentrate on analysis.
- Seamless integration experience with other systems to ensure the sharing of performance data across risk, accounting, and reporting operations. System interoperability should allow integrations within a firm’s existing ecosystem through APIs for comprehensiveness and connectivity to external software programs and tools.
- A consolidated, complete performance platform that delivers simplicity and efficiency. Firms often acquire multiple performance measurement solutions for different strategies, asset classes, or product lines, which drags down productivity. Consolidating all calculations and analysis on a single, centralized solution helps drive consistency and standardization, enabling teams to be more effective.
- Support for hybrid workplace models to provide access capabilities for performance professionals in-office and remotely to work where and when needed.
Performance teams need the right tools and technology to measure and evaluate portfolio performance accurately and provide the front office with the insight it needs into investment performance strategy and performance drivers. For more insights into the essential requirements for enhancing your performance team’s effectiveness, download our whitepaper, Elevating Performance Team Achievement, or contact us to request a demo.
