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While much has been written about attribution in the context of individual asset classes, the asset owner confronts a much more complex scenario. In the interest of maximizing return/risk payoff (often subject to external mandates, liability streams, and risk constraints), asset owners frequently diversify their total fund amongst multiple asset classes: equity, fixed income, hedged
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Driving Strategic Transformation for Wealth Management Firms: A Framework for Technology Vendor Selection
Like many industries, wealth management is undergoing a change. Demographic and generational shifts in wealth will continue to reshape services and enhance the digital experience . In a survey of 120 wealth managers, 87% reported that they have made significant investments in technology over the past several years. Tech transformations within large wealth management firms are often achieved through integrations of vendor platforms with proprietary applications, as stakeholder needs are particularly diverse. A single platform solution may solve for a set number of stakeholders, but firms with various client types require multiple solutions that integrate seamlessly. Deciding on the best technology partners requires a proven, structured approach to technology evaluation.
by Tina Madel, CFA, Senior Manager
Jose Michaelraj, CIPM, CAIA, Manager
Josh Gerwick, CFA, CIPM, Consultant
Top 3 Reasons Why Asset Owners Should Claim GIPS® Compliance
Compliance with the GIPS standards is widely adopted within the institutional asset management industry as it is considered the industry’s best practice for calculating and reporting investment performance. Asset owners’ need for reliable and transparent investment performance when evaluating and hiring outsourced investment managers is a major reason for the rise in the Standards’ popularity. In recent years, the industry has seen a trend in asset owners’ turning their attention to their own investment performance reporting and adopting the GIPS standards. This movement has now gained momentum with CFA Institute’s release of guidance specific to asset owners to make adoption of the standards easier. Aside from better-fit guidance allowing for easier implementation, why are asset owners interested in claiming compliance with the GIPS standards?
by Alicia Spencer, CIPM, Senior Manager
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Demystifying Sleeve-Level Reporting: Creating Operational Efficiencies While Satisfying Demand for Accuracy and Transparency
Today, many wealth management firms seek to find the right balance between meeting client needs and achieving scalability. Using model portfolios and technology to efficiently implement trade decisions across an entire book of business optimizes the operating model. However, this approach may cause significant hurdles when it comes to client reporting and Global Investment Performance Standards (GIPS®) composite reporting. This article dives into the concept of sleeves – what they are, why they exist, common performance reporting problems and how one technology provider aims to address these challenges.
by Tina M. Madel, CFA, Wealth Practice Lead…
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Wealth Management Study: A Survey Prompted by the Radically Evolving Operating Environment
Meradia’s 2020 wealth management survey collates information from interviews with key executives in the industry. The participating firms range from small- to mid-size and specialize in wealth management and trust service and operations. The study surfaces how firms view market trends and potential future challenges and involves deep discussions about their internal operating models.
The final output is designed to give insight to the industry in the form of commentary rather than statistics, gauge how the market is feeling as well as how firms are managing their clients and businesses. The views are based on observations made by the executives who participated.
by Joshua B. Levitt, Principal
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Client Reporting for Wealth Managers: Taming the Challenges of Bespoke Meeting Books
Wealth managers offer a variety of services for high net worth, ultra-high net worth and institutional clients. Their services may include investment advisory, portfolio management, administration and oversight of trusts, monitoring against investment policy statements, goals-based wealth planning, total net worth aggregation and management of gifts and grants for endowments and foundations.
For multi-service wealth managers, there are a multitude of challenges in efficiently preparing client meeting books. They can include exhibits relevant to some or all these services. Advisors and support staff compile data points from multiple sources in multiple formats to create a comprehensive book which often takes hours to produce the finished product for a single client meeting. Here within we address solutions to making client reporting more efficient while maintaining flexibility and a high standard of quality.
by Thomas E. Alex, PMP, Principal
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Self-Service Client Reporting: Challenges and Considerations
The risks and challenges presented here within are a sample of factors to consider when evaluating self-service reporting functionality. At the outset, providing electronic access to data seems simple. Layering increased data scrutiny by end-users with regulatory expectations that mimic those included on printed, scripted and static reports is complex. Identifying your firm’s specific challenges and charting a course to overcome them is a worthwhile, rewarding endeavor that will improve relationships with your clients. Meradia has a long history of helping clients with reporting challenges – including self-service reporting.
by Laurie J. Hesketh, CIPM, PMP, Managing Director
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Multi-Asset Class Investing: Part 2 – Meeting the Process Challenge
Meradia has observed a strong uptick in activity around Multi-Asset Class (MAC) investment products and strategies. We see managers across the globe expanding current MAC offerings and introducing new ones; consequently, generating demand for new support around analytic methodologies, data, and technology.
This series explores our view of the MAC phenomenon in depth, from origins to solutions. In our first of three installments, we looked at market and industry trends that seem to be driving the evolution of MAC toward more sophisticated strategies and methods. In this second installment, we examine the MAC investment process itself: What are the methods and practices that successful MAC managers employ, and how do these distinguish MAC from more traditional approaches?
by Mark R. David, CFA, Director of Performance, Risk & Analytics
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