Wednesday, 29 March 2017

Asset management performance analysis

What's this?! ... you may be asking yourself, dear reader(s). Well, there's this report, see. It's been written by a guy called Jay Wolstenholme, who is a senior analyst at Celent. 'Celent, boss? What's Celent?!' Christ!

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis.

You see, Voice? 'Yeah, man. You seem remarkably well-informed. Have you been doing some cheeky research, while I wasn't looking, like?' Ha! No. It's a PR email. 'Oh, I should have guessed.' It's no big deal. / So, anyway -

Performance analysis and attribution is a top of the list requirement for asset managers to demonstrate their value. Performance analysis is not only crucial in the investment process but increasingly critical for solid client communications and marketing in an ultra-competitive institutional client market.

Wow! 'Great!' Yeah. And the thing is, our Jay has answered a few questions with this report of his -

What are the main performance attribution trends in asset management?

What are performance analysis systems trying to solve?

What are the key functional areas for performance attribution systems in asset management?

Those questions. 'Very interesting, boss. I suppose there are some findings, maybe even key findings.' Ha! You're on the ball today, man! There are some findings, key findings.

Key findings include:

In today's competitive landscape asset managers must not only have a superior investment strategy and performance track record but also constantly communicate it to existing clients and utilize it in marketing campaigns.

Equity attribution variables continue to expand as asset managers are developing new types of smart beta portfolios that blur the lines between passive and active investment styles. It is important to both asset managers and investors to be able to assess the performance components all detailed factors to ensure that performance Alpha is being achieved through the adjusted weighting of factors versus just luck or chance.

Performance analysis tools have always been part of the investment process but today more sophisticated, quantitative, cross product GIPs compliant tools are available from vendors meeting the new demands of asset managers.

Not bad, eh? 'It's all right, boss. It would be nice though if our Jay actually had a comment to make on the whole thing. Shame.' He does! FFS!

"In today's investment environment, asset owners are gravitating toward asset managers who can quantitatively outline their performance achievements, starting with aggregation, drill down to contribution and attribution detail, visualization graphics, and increasingly mobile and configurable access," commented Wolstenholme.

Happy now? 'Yeah, that's nice.' Well, I'm glad you're happy, Voice. Let's hope the readers are happy, too. 'As if you care, Mikey.' Ha!


Anything else? Music? This ain't a music blog, is it? So, no. No music. Deal with it!

Politics? This ain't a politics blog either. However, the prime minister wants us all to unite now. 'Ha!' Yeah. Er ... I'll give that a miss, Theresa, if you don't mind. FFS!

Laters, reader(s).