When conducting a system-wide transformation, there are certain details that tend to be neglected. While some missing pieces can be less harmful than others, there is one that can derail your plans completely: Data.
Elizabeth M. Colebrooke, Senior Manager…
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Once the decision to replace an investment performance system has been made, most firms kick off the effort by mobilizing a formidable complement of resources, all charged with a single objective: selecting the vendor(s) who will make it so. Sponsors, steering committees, stakeholders, managers, experts and analysts are convened. RFPs listing thousands of criteria, elaborate scoring schemes, long lists and short lists are constructed. Initial and targeted demos, proof-of-concept, final selection, management approvals and contract negotiations are conducted. Boxes are ticked. This elaborate pageant commands vast amounts of both internal resources and calendar time — once the winner has finally been announced, a festive celebration is held, and backs are patted all around.
by Mark R. David, CFA…
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Over the past two years, the world has seen Environmental, Social and Governance (ESG) disclosure requirements grow at a rapid pace, and the first sets of ESG financial disclosures go into effect. Now, a trend of mandatory ESG financial disclosures has begun. From required stress tests in Q1 2022 mandated by the European Central Bank to New Zealand’s new law enshrining a global climate-related disclosure framework, 2022 will go down in history as a period of change. Here, we help investment managers understand mandated requirements and what U.S.-based companies can expect in 2022.
by Andrew R. Jacob, CFA, Consultant…
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Investment performance teams are under pressure to adapt to economic and market volatility amid rapid industry consolidation, operational outsourcing and technological disruption. When working with institutional asset managers, asset owners, wealth managers, insurers, and asset servicing vendors, Meradia has observed the impact of these trends firsthand. Here, we examine the forces at play and how the industry may evolve in 2022 and beyond.
by the Meradia Investment Performance Practice
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ESG disclosure rules are evolving, and there is much uncertainty. While we await further developments in the U.S. and abroad, let’s explore potential challenges investment managers may face in complying with these regulations.
by Andrew R. Jacob, CFA, Consultant…
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Numerous vendors provide data aggregation services, and choosing the right one for your business requires asking the right questions. You may be tempted to select a solution based on the broadest coverage of sources, such as custodians and banks, or product pricing. Those criteria work well if your goal is to provide a snapshot view for your front-office advisors and clients who require a holistic financial picture. On the other hand, if your objective is to create an accounting book of record (ABOR), providing key inputs for critical investment management and reporting activities, you need to ask vendors about their processes. Here are five questions that will help you narrow your search and find the best fit.
by Tina Madel, CFA, Wealth Practice Lead…
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The front office of an investment management firm is rarely, if ever, managed by a consultant. Key functions such as Head of Portfolio Management and Head of Trading are roles best suited for internal personnel. However, there are certain scenarios when it’s more effective to leave the work to an external resource. Here, we explain how front-office consultants can help your firm through a business transformation in ways internal resources can’t.
by Elizabeth M. Colebrooke, Principal…
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The consolidation of middle- and back-office outsourcing is gaining popularity across the investment management industry. To date, there have been many debates around the pros and cons of this trend. Whether your firm has already made the decision to outsource or is actively evaluating options, there’s much to consider. How do you know you’ve made the right choice? Have you considered the most important factors? We believe wearing a “special” lens might reveal insights missing in existing discussions, paving the way for a novel method to assess comparable offerings and potentially result in superior outcomes.
by Jose R. Michaelraj, CIPM, CAIA Senior Consultant…
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Have you selected a new investment operations system to replace your legacy technology and manual workarounds? Or have you decided to outsource investment operations to a service provider?
Both efforts are significant, and likely the largest your part of the organization has ever seen. Are you making the right decisions? Or are you missing a golden opportunity to advance your business and improve the way you work? Here are three red flags you’re overlooking business transformation opportunities.
by Brian J. Lollar, Managing Director…
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The concept of a Performance Book of Record (PBOR) has continued to evolve across the investment management industry. This paper, which was featured in the Journal of Performance Measurement, outlines the state of PBOR today and why it can help firms leverage enterprise data for future growth.
by Richard E. Mailhos, Principal and Investment Performance Practice Lead
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