Inconsistent Use of Asset Classification Schemas: Does
Throughout its client consulting history, Meradia Group has been retained to recommend workflows borne out of the collision between a firm’s proprietary asset allocation hierarchy and other competing hierarchies both internal and external to the firm. No matter what the size, sophistication, or tenure of the firm, the firm’s effort (or, in many cases, the absence thereof) to reconcile the multiple schemas has almost always fallen short of a workable, scalable model. We assert that the investment industry needs to adopt consistent standards for the classification of investment assets by Asset Class. Additionally, we claim that there should be a coherent process and framework for resolving disparate schema into a single, unified model.