Bringing Portfolio Management to a Whole New Level Through Technology
Portfolio management systems are simple enough to explain in theory. They involve the aggregation of different investment vehicles and assigning weight on various elements to determine the best mix of investments that will yield maximum results (read: money). In practice, portfolio management is highly complex and an effective portfolio manager must simultaneously take into consideration different factors such as long-term goals, budget, timing, cost, allowance for risk, interdependencies, and change in the market over time.
Adding to the complexity of portfolio management are the growing considerations in accountability and transparency that have been set by regulatory bodies. This is where portfolio management tools come in. The right tools can help a fund manager reap returns while practicing fiscal accountability.
Keeping it simple with portfolio management technology
As individual and institutional clients increasingly require a collaborative relationship with fund managers, the latter are expected to provide real time information and updates on investments being made. Such candid communication and sharing of information solidifies trust and reputation. This makes portfolio management technology an important tool in anyfund manager’s arsenal.
Assets Under Management have nearly doubled in the last five years and fund managers aim for this growth to continue. However, growth in capital also requires growth in operational capabilities than can handle increasing investment transactions. Over the years,prevailing manual processes for rebalancing accounts, creating models and allocations, and acquiring real time holdings data, have made portfolio management a time consuming and tedious task. To avoid the conundrum of being stuck in a primitive system that hinders growth, it is important to choose a portfolio management system that best meets the needs of clients through research-based features and data storage capabilities.
Role in compliance
The best portfolio management systems also have functionalities that allow fund managers to meet industry requirements and regulations, even as these managers focus primarily on alpha generation. To enable the efficient multitasking required of any fund manager, there has to be integration of workflow-based functionality and straight-through processing.
Boosting client engagement
According to a survey, about 70% of wealth management companiesbelieve that using technology can drastically increase fund manager productivity and client engagement. On the other hand, less than 40% feel confident with their ability to utilize portfolio management systems to satisfy the needs of their clients.
Finding the appropriate portfolio management system not only leads to better performance, but also to better relationships with clients. In fact, by having a reliable technology framework for communicating data to clients, fund managers can reduce time they previously allotted to this function by 70%. This valuable time that can then be refocused on strategizing and alpha-generating activities.
Adding to the complexity of portfolio management are the growing considerations in accountability and transparency that have been set by regulatory bodies. This is where portfolio management tools come in. The right tools can help a fund manager reap returns while practicing fiscal accountability.
Keeping it simple with portfolio management technology
As individual and institutional clients increasingly require a collaborative relationship with fund managers, the latter are expected to provide real time information and updates on investments being made. Such candid communication and sharing of information solidifies trust and reputation. This makes portfolio management technology an important tool in anyfund manager’s arsenal.
Assets Under Management have nearly doubled in the last five years and fund managers aim for this growth to continue. However, growth in capital also requires growth in operational capabilities than can handle increasing investment transactions. Over the years,prevailing manual processes for rebalancing accounts, creating models and allocations, and acquiring real time holdings data, have made portfolio management a time consuming and tedious task. To avoid the conundrum of being stuck in a primitive system that hinders growth, it is important to choose a portfolio management system that best meets the needs of clients through research-based features and data storage capabilities.
Role in compliance
The best portfolio management systems also have functionalities that allow fund managers to meet industry requirements and regulations, even as these managers focus primarily on alpha generation. To enable the efficient multitasking required of any fund manager, there has to be integration of workflow-based functionality and straight-through processing.
Boosting client engagement
According to a survey, about 70% of wealth management companiesbelieve that using technology can drastically increase fund manager productivity and client engagement. On the other hand, less than 40% feel confident with their ability to utilize portfolio management systems to satisfy the needs of their clients.
Finding the appropriate portfolio management system not only leads to better performance, but also to better relationships with clients. In fact, by having a reliable technology framework for communicating data to clients, fund managers can reduce time they previously allotted to this function by 70%. This valuable time that can then be refocused on strategizing and alpha-generating activities.
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