By Inderjit Gawera
Meeting the demands of daily operations can be difficult especially with ever-increasing volumes, fund and instrument innovation, evolving regulation and tax rules, and tighter servicing agreements. To keep up, managers often introduce specialist systems and tactical workarounds to manage investment operations.
The result: operations with multiple systems such as front-office order management solutions for trade management and execution, back-office platforms for investment accounting and unit pricing, and middle-office capabilities for compliance and post-trade processing.
These workarounds also result in many mangers relying on manual processes within component solutions to update data, process obscure corporate actions exceptions, or manipulate bespoke costing rules for specific instrument types.
These workarounds are viable where risks and overhead costs can be managed and volumes are low. However, as volumes grow, instruments become more complex, costs increase, and windows of opportunity shorten, asset managers are forced to seek automated solutions to streamline their operations.
This need for scalability through automation is being driven from all angles. Market activity is fragmented across geographies, asset classes, and fund types. Clients want greater transparency and regulators are issuing new mandates. Basic jurisdictional rules and fund accounting methods must also be accommodated. However, scalability cannot be achieved by simply increasing man hours. There is operational risk in manual processes, especially when people are working under pressure. What asset managers need is an end-to-end solution for their investment operations.
One way we can help clients achieve scalable, robust, straight-through-processing-geared solutions is through our proprietary technology and expertise delivering outsourcing services. To learn more, please contact us at firstname.lastname@example.org.
Read the next post in our series, “The Challenge of Complexity: Introducing Investment Operations Automation, Part 2.”