Shaping the Data: why the cloud works for smaller asset management firms
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Transcript of Shaping the Data: why the cloud works for smaller asset management firms
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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