Data Mesh – Investment Industry Trend or Unicorn?

Recently, we attended a financial data industry event and listened to one company after another share their experiences in their data governance and management journey. That day, we learned that only a few had moved forward with a data mesh save for leaders in the industry. Those leaders shared their implementation stories, and we will share this question with you. What came to our minds at the time was whether Data Mesh was a unicorn in the investment industry. Is the self-service data platform a myth or a reality? With that question in mind, we spoke to several firms at the gathering and interviewed others afterward to learn about the data mesh ‘state of the union’ in the investment industry.

by Andrew Jacob, CFA

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Facing the Challenges of Mergers and Acquisitions

With one in six asset managers expected to be acquired or go out of business in the next five years, preparing for M&A activities is crucial for success. It’s important to consider each option’s potential benefits and challenges and to carefully evaluate whether M&A activities align with your firm’s goals and values. However, these processes can have significant challenges, including cost management, personnel, and legal and regulatory issues. Jonathan Boersma, CFA’s latest article, “Facing the Challenges of Mergers and Acquisitions”, explores these challenges and provides considerations for mitigating them.

by Jonathan Boersma, CFA

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Maximizing Value In Asset Management: A Closer Look At Insourced Operations

INVESTMENT OPERATIONS IS AN ASSET, NOT A LIABILITY What is the role of investment operations in asset management? Should asset managers insource, outsource, or use managed services? The decision is a difficult one. Discussions around modern target operating models and how to utilize investment operations have highlighted the benefits of outsourcing middle and back-office functions.

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Reap More Value From Data in Operational Transformations

“SURROUNDED BY DATA, BUT STARVED FOR INSIGHTS.” – JAY BAER LEVERAGE CAPABILITIES AVAILABLE IN EMERGING CONVERSION TOOLS TO SUPPORT PLANNING INSIGHTS In the first paper, we said that Performance is Data, sometimes a daunting data challenge. Performance data generation happens in successive layers. Aggregation of holdings creates exposures; changes in market values or exposures create returns; returns lay

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Nine Trends Defining Financial Data Management in 2023 and Beyond

While it’s impossible to know exactly what to expect for the future of the data management and governance industry, research and experience combine to yield what we believe will be the top trends over the coming years. These trends will shape the technology, operations, and performance of nearly every firm in the investment industry in some way.

by Andrew Jacob, CFA, Senior Consultant

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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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Key Operational Considerations for Crypto Investment Managers

As demand for crypto offerings intensifies, asset managers entering this market are facing new operational challenges that are unique to this emerging asset class. This article highlights regulatory, valuation, performance, and safekeeping aspects of traditional managers’ operations that require a special approach when it comes to digital currencies.

by Natasha Romanova, CIPM, Consultant

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Composites: Considering the New SEC Marketing Rule and the GIPS Standards

The November 4, 2022 deadline for the new SEC Marketing Rule requires firms to create and maintain composites in order to market their performance. Many investment managers are looking to the Global Investment Performance Standards (GIPS®) for guidance and best practices, leading some to consider taking the necessary steps to claim GIPS compliance. Here, we address some of the most frequently asked questions about this process.

by Jonathan A. Boersma, CFA
Natasha E. Romanova, CIPM

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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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The Wave of Mandatory ESG Financial Disclosures Has Begun. When Will the Wave Hit the U.S.?

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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