SimCorp has published a new white paper by forward look, inc. titled, “Operational Efficiency and Portfolio Performance: How Improved Operating Quality Helps Enable Portfolio Returns.” The paper, authored by Chito Jovellanos, forward look President and CEO, is part of an ongoing series of industry thought leadership, compiled and published by SimCorp.
Download it here - Operational Efficiency and Portfolio Performance: How Improved Operating Quality Helps Enable Portfolio Returns
In the paper, Jovellanos describes a 10 year research study that clarified how state-of-the-art technology enables buy-side firms to realize forecast alpha from their investment strategies- drawing a direct link between operational effectiveness and portfolio performance. By allowing better control of enterprise data, investment managers can quickly and readily analyze that data in order to improve business performance and gain competitive advantage. By investing in state-of-the-art technology, investment managers can retain 51-242 basis points of inherent alpha by minimizing implementation shortfalls arising from suboptimal investment operations.
Jovellanos comments, “Only with a robust platform and organization in place can firm-wide information be leveraged to support improved portfolio performance. ‘State-of-the-art’ reflects an integrated operational environment that can efficiently manage and exploit data already, or nearly, at hand. Creating a state-of-the-art environment means decommissioning ad-hoc workflows and associated technologies to eliminate the needless complexity that hampers performance.”
In order for firms to be fully in control of their data, the paper points to the crucial role of an investment book of record (IBOR) – a centralized data management framework that meets front- and back-office information needs.
“Implementing a single IBOR is fundamental to enabling durable portfolio performance. By having a unified view into data, investment managers can address investment operations inefficiencies and complexity and prioritize potential performance gains,” says David Kubersky, Managing Director for SimCorp North America. “Although many firms may not realize the direct link between efficient operations and portfolio growth, the relationship and opportunity is clear. Having a single source of truth in an IBOR enables asset managers to have a powerful view into enterprise data and make more informed business decisions. As a result, managers can gain much-needed operational efficiency and drive performance.”
To download a copy of the forward look, inc. paper as featured in the latest SimCorp Journal of Applied IT and Investment Management, please click here.
Enquiries regarding this announcement should be addressed to:
Susan Peter, SimCorp North America (+ 1 917-546-4654)
Kevin Maher/Angela Byrne, Cognito, (+1 646-395-6300)
Since 1971, SimCorp has been providing investment and portfolio management software and services to the world’s leading investment managers, asset managers, fund managers, fund administrators, pension funds, insurance funds and wealth managers. SimCorp’s world-class software provides global financial organizations with the tools they need to mitigate risk, reduce cost and enable growth. SimCorp is a global company, regionally covering all of Europe, North America and Asia Pacific. Listed on the NASDAQ OMX Copenhagen, SimCorp is dedicated to supporting the global investment management industry, its clients and its investors. For more information about SimCorp's products, please visit www.simcorp.com/product.