An asset management firm will usually implement a new performance system once every 10 years. BI-SAM’s Professional Services Group implements a new performance system multiple times every year. This means that BI-SAM’s Professional Services Group has more depth of experience and know-how in the area of implementing and upgrading performance systems than is usually found in most asset management organizations. So as we approach the end of the year, we thought it would be interesting to look back at 2015 and highlight some of the areas where the team has provided advice and guidance to our client base, and share this with the readers of the BI-SAM Insights blog.
In our previous blog post we discussed the use of attribution analysis and fixed income attribution methodologies to analyze bond portfolios. Surprisingly, attribution analysis is not widely used for bond portfolios; and of those using fixed income attribution, many are dissatisfied to some extent with the results it produces. The reasons often given are that it’s hard to understand and it’s hard to implement.