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Generating alpha is hard enough, so why let cash drag stifle returns? With derivative-laden portfolios in a high-interest rate environment, collateral presents opportunity to improve returns. The decade-long period of low-interest rates created detrimental habits with a default cash collateral model. Asset owners face challenges in diversifying collateral beyond cash due to existing infrastructure that
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Charting the Course: Enhancing Performance Through Effective Private Market and External Manager Practices
Asset Owners¹ play a pivotal role in the institutional side of the investment landscape, utilizing capital markets to fulfill the long-term needs of beneficiaries. Their objectives are intricately tied to liquidity requirements and investment horizons, overseen by stakeholders such as Boards, Trustees, and Investment Committees. Given the diverse asset classes involved, a blend of internal
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The AI Revolution: Must-Knows for Financial Operations Leaders
The integration of Artificial Intelligence (AI) in the financial sector is not merely a trend but a transformational evolution redefining the industry. This paper illustrates strategic business cases within financial operations where AI has not only been implemented but has also generated substantial value. At Meradia, we are convinced that the intersection of human creativity
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Meradia’s 2024 Industry Outlook
As we conclude the first quarter of 2024, the financial services industry continues to evolve at a rapid pace, driven by transformative technologies with potential to reshape investment operations. At Meradia, we anticipate a dynamic year will continue to unfold, characterized by innovation, regulatory shifts, and strategic opportunities. Reflecting on discussions with my team and clients, it became apparent that several key topics were consistently top of mind. Here is a summary of the trends driving change across the investment management industry today.
by Laurie Hesketh, CIPM, PMP
Richard Mailhos
Secrets to Successful Data Transformation Strategies
The financial industry is witnessing a transformational ‘tidal wave’ of change, with vendors exerting a gravitational pull on the front office, providing integrated data and applications while asset servicing providers absorb post-trade, middle, and back-office operations. Generative AI, NLP, and machine learning demonstrate near limitless application and use opportunities. Competition for assets and consistency in
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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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UAT for Performance Transformations Is Notoriously Difficult. It Doesn’t Need To Be.
User Acceptance Testing (UAT) can throw projects into a frustrating and mind-numbing stall, which is catastrophic to any transformation. The terror of botching a go-live event with insufficient data commonly leads users into a frenzy of checking, double-checking, approving, re-checking, and reapproving. As the process repeats across test cases, progress toward user confidence seems negligible.
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Operational Challenges of M&A with Jonathan Boersma, CFA | GIPS® 2023
During the 27th Annual GIPS Standards conference hosted by CFA Institute, Jonathan Boersma, CFA, was invited to speak on mergers and acquisitions with CFA Institute’s Director of Global Industry Standards Beth Kaiser Schwartz, CFA, CIPM, and Insight Investment’s James O’Leary. View the video here: https://players.brightcove.net/pages/v1/index.html?accountId=1183701590001&playerId=rkcysOOFe&videoId=6339983404112&autoplay=true Jonathan also wrote about the operational challenges of mergers and
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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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