Eight Signs You've Outgrown Your Portfolio Management System

By Marvin Gagliardotto, Solutions Consultant,Advent Software on Wednesday, November 19th, 2014

It’s 1990—you throw on your aviators and jump into your red and blacked striped Camaro. Passer-byers gawk with jealousy, and it does everything you want and more. Skip to 2014—there’s some glitches in the system, the paint is chipping, and the six-point turn just isn’t cutting it anymore. Time is no longer in your favor and generations of new and improved models have taken over the roads.

It’s time for an upgrade, but you’re not alone.  The pace of change with regard to how investment management professionals conduct business has moved extremely fast since the financial crisis. These changes have kept investment managers on their toes and, along with a general lack of trust in financial markets, have contributed to a challenging growth environment. The good news is that we are now seeing real signs of a breakthrough when it comes to growth.  Boston Consulting Group reported in its annual worldwide study of the asset management industry that the asset management industry has now had two consecutive years of solid growth with 2013 marking its strongest year since the financial crisis.  Behind this period of emerging growth are a number of factors like the introduction of new asset classes and strategies, geographic expansion, and new sources of capital inflow. BCG also points to a more demanding class of investors with a growing preference for nontraditional assets.  This is exciting news for the industry, but no doubt, new sources of growth bring new challenges of their own like the need for increased investor due diligence and for a scalable, flexible infrastructure to facilitate growth and change without disruption to the investment manager’s day-to-day operations.

If you have a hunch you’ve outgrown your portfolio management system, ask yourself these questions:

  1. Are you able to support all instruments, asset classes and currencies that the Portfolio Manager wants to adopt?
  2. Are you able to fully shadow your NAV to your Fund Administrator?
  3. Does client reporting deliver on the frequency, transparency and depth that your investors demand?
  4. Do you have real-time data access and management?

Did you answer no to the first 4 signs that you’ve outgrown your portfolio management system? It may be time to trade in that 1990 Camaro.

Marvin is a solutions consultant at Advent Software with responsibility for presales consulting and solution development for Advent’s fund accounting platform Geneva. His primary focus is to provide a functional and technical consultative support for both hedge funds and service provider firms.

 This article was reposted from the Advent On-Point Blog


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