April 15th, 2015
Performance attribution allows asset managers to provide timely feedback on the investment process, internally and externally. In the past few years, firms have met challenges to meet industry standards in evaluating sources of returns for transparency and disclosure in performance and attribution measurement. Adeptyx Consulting is helping our clients to be better positioned for growth, and getting there through leveraging automation as a modern approach to more effective data management.
More and more, firms are diversifying across asset classes. This significantly increases the complexity of performance measurement and attribution, and many firms are struggling with inflexible infrastructures that do not support their growth.
There are a lot of available products and options for firms who want to evolve their performance attribution models, and who are looking to balance customization and flexibility, with quicker implementations and lower costs. Solutions include exploiting existing features of in-house portfolio management systems, choosing to build or integrate purchased software, or signing on for cloud or hosted solutions. Decisions to build, buy or develop a hybrid approach are situational dependent, and the pros and cons of each approach must be considered.
A disciplined approach to projects and a rigorous examination of a firm’s requirements is needed to seek out the best solution.
Priorities for today’s business include:
- Seamless integration with existing systems;
- Support for changing business functions;
- Normalizing data inputs from multiple sources;
- Ensuring consistent data across systems;
- Maximizing the value added for costly market data;
- Minimizing project costs and the time to implement;
- Customizing solutions when necessary;
- Automation of data collection, and calculation;
- Reporting of results internally and externally;
- Ability to scale systems for increased volumes and products.
A good initial step in the process of evolving your performance attribution system is to understand what solutions are available in the market place. Adeptyx Consulting has done comparisons of featured systems and can provide insights into our findings upon request. Please send inquiries to: AriFuad@adeptyx.com.