The Latest Challenges with Performance Measurement

December 28, 2011

In November, Aite Group published a study titled “Managing Performance Measurement: Challenges, Structures, and Systems” that provides a broad-based overview of this space.  Although the sample size of the survey is a bit too small to draw conclusions from (it’s based on interviews with 19 investment performance professionals), the report lays out a number of industry challenges that we at PORTIA hear on a consistent basis.

 Below are a few of the key challenges cited by multiple interviewees:

  • Achieving scale in performance management and handling existing workloads is a challenge for most organizations, although staffing of these functions varies greatly across organizations, irrespective of an organization’s size (as measured by AUM)
  • Performance reporting capabilities need to be more customized, as clients are becoming more knowledgeable and are demanding more granularity in reports
  • Some organization are experiencing issues with performance data quality and integrity, partially driven by a lack of interfaces and integration across multiple middle-to-back office systems

In order to address these points, we believe performance solutions should be not only scalable, but also automated so that organizations can focus their teams on higher value activities.  Reporting presents a slightly different challenge, insofar as any solution must provide analytic rigor, be easily customized and provide reporting through automated workflows with a level of quality that will improve how you engage with demanding institutional investors.  Most vendors in this space can provide GIPS-based analytics, but few can do so flexibly and efficiently with presentation-quality outputs. 

At PORTIA, we provide solutions for both performance management and reporting that meet the above criteria and are fully integrated with the rest of our middle-to-back office capabilities.  Our solutions are based on an open architecture that allows for easy integration with other systems, to ensure that data is managed efficiently and carefully.  And as you’d expect from PORTIA, our systems are highly scalable and reliable, which is why the world’s largest asset managers rely on PORTIA to support their middle-to-back office operations.

The Aite Group report goes on to address how firms manage performance.  As we blogged about in March 2011, the report affirms that firms continue to maintain centralized performance teams as part of their operations in order to meet the ever-increasing interest from investors who continue to scrutinize performance.  To learn more about the performance landscape, including how firms manage performance from an organizational perspective, we recommend you read the full Aite Group report.

Are you observing the same challenges with performance management?  How is your organization managing performance?

 -Matt Bellias, Director of Strategy and Marketing

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