How to do more with less? It is a key challenge facing all investment management industry participants, as they strive to deliver outstanding customer service while wrestling with intensifying regulatory demands, and the need to manage risks and control costs.
To attract capital, many asset managers have introduced technology promising lower risks and more stable returns. Yet they may also add new layers of complexity into the investment accounting function. Likewise, the growth of cross-border trading--with the multiple currencies and different tax and accounting regimes that result--places onerous burdens on asset managers and servicers responsible for tracking the daily portfolio valuations. This invariably leads to a requirement for multiple sets of records, which are often housed on separate platforms. The result? Significant operational overhead, and the constant risk of misalignment.