World-leading investment management systems require integration capability as data grows in strategic importance
Investment management is a dynamic industry and the growing importance of data is driving a seismic shift in the way funds are operated. Those funds that continue to rely on multiple spreadsheets with no integration to a single source of truth risk being left behind, especially as investors become more astute about investment returns.
Changes are driven by many factors: shifting market conditions, globalisation of assets, investor preferences, risk tolerances, margin compression, regulatory developments, advancing technologies and many more.. It’s a fast-growing area that’s making increased use of digital solutions to help streamline data processes and inform strategy. Staying ahead in this industry is down to embracing change and transformation, which means a business must have the ability to analyse and use its data to make informed decisions.
In simple terms, the industry wants to ensure decisions are based on fact through ‘a single source of truth’ to generate positive investor returns. Those funds which use data as a core part of their strategy to support competent people and mature processes will no doubt see member growth. Returns and performance determine growth, and those funds that invest in agnostic platforms that can integrate with upstream custodial systems and downstream powerful analytical tools will have a great advantage of competitors. Funds will need to keep pace with technology and capital investment to unlock the full benefits that enriched and validated data can provide.
Managing the amount of data your business deals with, as well as coping with regulations and knowing that the data you’re using is secure and accurate are fundamental challenges for the industry.
AlphaCert’s open architecture allows us to provide data to any best-of-breed third party system. For example, we have a pre-built an integration module to BlackRock Aladdin, one of the world’s leading Portfolio Management Systems. BlackRock Aladdin is relied on by over 25,000 investment professionals worldwide. The AlphaCert data model contains the data fields required by BlackRock Aladdin, and we offer a fast time to value for getting an AlphaCert to Aladdin connector configured and supplying data. We also have a pre-built integration module to Ortec Pearl, one of the world’s leading Performance measurement and Attribution Systems. AlphaCert currently supplies data representing over $150 billion to Ortec Pearl on a daily basis.
The AlphaCert platform provides a single source of truth to investment managers. With extensive verification and data dissemination capabilities, AlphaCert enhances existing systems and enables everyone from analysts to CIOs, CFOs, and COOs to have confidence in their data through:
- Straight-forward reports and improved efficiency
- Rapid verification of custodian data
- Improved knowledge and data integrity
- Reliable, automated data processing
In terms of platform capability, investment managers gain control by having AlphaCert at the core of their information architecture. AlphaCert’s position within that structure is what we call a “hub and spoke” architecture. AlphaCert acts as the data hub at the centre and specialist systems ingest data creating a strategically powerful single source of truth.
What this means is that financial analysts can dedicate their time to what they do best: adding value to investment portfolios, aided by the swift delivery of intelligent, high quality, high integrity and up-to-the-minute data. More time adding value making decisions as opposed to collating, validating, and making sense of data will lead to significant operational efficiency.
If you’d like to find out more about how AlphaCert helps investment managers achieve speed and efficiencies then check out our solutions.