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The client has become an incredibly savvy partner in performance measurement. Their appetite for new and complex investment strategies continues to grow but increased client interest in analyzing returns can present reporting challenges to asset managers. With little regulatory guidance on what needs to be reported to end-investors, many asset managers turn to GIPS standards. These provide a great benchmark for consistency and transparency but without the proper performance reporting tools in place, GIPS can be difficult to achieve. Composite management and report delivery are two GIPS challenges that can be easily resolved with a powerful performance reporting solution.

Manually tracking portfolio participation within composites is burdensome, especially with a large number of portfolios with various mandates and inclusion criteria that change over time. However, consistency across composites is critical in achieving GIPS compliance and satisfying client mandates. Rather than rely on internal processes to create and maintain composites, asset managers should look for a tool that provides the following functionality:

  • Automatic management of composite membership by adding and removing portfolios based on user defined criteria
  • Support for multiple methodologies for calculating composite returns
  • Calculation of various dispersion and composite-level risk measures
  • Employment of carve-outs
  • Ability to generate multiple user-defined return types including gross, net of taxes/fees, and price-only returns.
  • Calculation of composite net of fee returns based on a fee schedule
  • Support for extensive disclosure capabilities
  • Automation of disclosures
  • Maintenance of a full audit trail with annotations
  • Ability to generate client-ready composite booklets

With appropriate composite management, asset managers are able to benchmark performance against client mandates, but the next step in the process is generation of client-ready reports. Reporting is one of the few value-add touch points that asset managers have, and can give firms the competitive edge with the right delivery. SS&C’s reporting solutions automate the production of customized reports in any format to streamline and conserve back-office resources. We also give you the ability to brand and format sleek presentations, spreadsheets, or web-based electronic reports or enable clients to build their own reports online. This offers enhanced transparency for the end-investor –a  key competitive differentiator for investment managers.

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