Shaping the Data

WHY THE CLOUD WORKS FOR SMALLER ASSET MANAGEMENT FIRMS

THEN AND NOW

Using risk and performance attribution data together to gain

better visibility is no new thing.

It has been on the agenda since before even the global financial crisis.

THEN AND NOW

But until recently, technology has simply not allowed for a single source of performance and risk analysis to be displayed in an easily readable

format and in a timely manner.

THEN AND NOW

This has now changed.

Scalable cloud-based systems mean that asset managers can now:

Pull the data from a single source

Apply the analytics

The user can then decide how they see the data, at what frequency and in how much detail.

Push that data back to the user’s desktop

“Looking ahead… our money is on the continued transformation of data-driven solutions across the asset management lifecycle, and a continued convergence

of the front and middle office.”CITISOFT’S 2016 OUTLOOK REPORT

THE START OF A TREND

“... changes in how managers want to analyze markets and construct portfolios will begin

driving firms to seek more integrated and robust solutions.”

CITISOFT’S 2016 OUTLOOK REPORT

THE START OF A TREND

The cloud will be a big enabler for boutique managers

NEW POSSIBILITIES

Smaller asset management firms are at both an advantage and a disadvantage to

their larger competitors.

NEW POSSIBILITIES

On the one hand, they are less likely to be

running multiple legacy systems with siloed data sets deeply embedded.

NEW POSSIBILITIES

The latest Bob’s guide to risk systems management describes this as

‘internal fragmentation’, leading to risk management being ‘heavily soiled’ with

different systems and an inability to see a snapshot of risk via an integrated system.

NEW POSSIBILITIES

NEW POSSIBILITIES

The cloud presents a real opportunity for change, the authors claim.

If boutiques have a cleaner data and system set to start with, then the lift out is also easier onto a

single data source platform within the cloud.

A QUESTION OF RISK

For smaller firms with less margin of error, being able to steer the correct course and have the data and analytics to frame a narrative for

existing and potential investors is essential.

These managers cannot afford for things to go badly wrong in the first place - they need to

know their risk limits.

A QUESTION OF NARRATIVE

They also need to be able to see what happened and why and be able to

underscore this with hard facts (attribution).

A QUESTION OF NARRATIVE

They also need to be able to see what happened and why and be able to

underscore this with hard facts (attribution).

Telling the story is an important way to add value to investors.

A QUESTION OF NARRATIVE

They also need to be able to see what happened and why and be able to

underscore this with hard facts (attribution).

Telling the story is an important way to add value to investors.

Having a system that can present a meaningful picture adds value in its own

right but also takes much of the work away from the resource-pushed boutiques.

A QUESTION OF NARRATIVE

Why?

A QUESTION OF NARRATIVE

Why?Every aspect can be managed off-premise - offering intrinsic appeal to a resource-pushed

team in a smaller middle office.

THE BOTTOM LINE

A system can share risk and performance data and multi-task

when it comes to analysis and output

This technology contributes to slicing inefficiencies out of a

business

The ability to automate processes and save

time provides significant added value

THE BOTTOM LINE

A system can share risk and performance data and multi-task

when it comes to analysis and output

This technology contributes to slicing inefficiencies out of a

business

The ability to automate processes and save

time provides significant added value

Never before have smaller asset management firms had so much opportunity to take their management

of performance and risk to a whole new level.

THE BOTTOM LINE

A system can share risk and performance data and multi-task

when it comes to analysis and output

This technology contributes to slicing inefficiencies out of a

business

The ability to automate processes and save

time provides significant added value

With the latest technological development, the ability to finally put all your eggs in one basket gives boutique managers a

new competitive advantage and a platform for growth.

• Cloud-based technology can now do much of the work for smaller managers

• Smaller asset managers need to be able to know their risk limits

• Smaller asset managers need to be able to tell existing and would-be investors a compelling story

• Having systems able to combine data and present it as like with like is of important competitive advantage

TAKEAWAYS

LOOKING FOR IMPROVEMENT IN

YOUR MIDDLE OFFICE?

Performance and Risk Analytics 2016-2020: how a combined approach can give boutiques the edge

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