BISAM Insights Blog

Peter Ellis, Director, P.K. Consulting Ltd. on Behalf of BISAM

Director, P.K. Consulting Ltd.
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Recent Posts

Dispatch from the Netherlands: Current Trends and Market Practices in Performance and Risk

Last week I facilitated a roundtable forum in Amsterdam that was sponsored by BISAM. We had a good cross-section of the Netherlands asset management community at the forum to discuss current trends and market practices in performance and risk. We had a very good, lively discussion and a number of very interesting points were raised. In this blog post I highlight two of those discussion points: challenges facing performance teams and the trend towards consolidation of performance and risk systems.

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Topics: Performance & Attribution

The Top Three Mistakes in Client Reporting

This is the second post describing some of my key takeaways from Osney Media’s Client Reporting and Communications Conference, which I chaired at the end of November. Last week’s post looked at whether it’s time to rethink the overall approach to regulations. This week’s post looks at the growing disconnect between investment managers and their clients, in the context of client reporting.

At the conference I chaired several panel sessions where the panellists were senior representatives from a range of institutional investors. It was clear to me that a disconnect is developing between managers and their clients. And so I have summarized my main takeaways from these panel sessions as the top three “mistakes” that managers are making with client reporting.

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Topics: Reporting

Time for a Regulatory Rethink?

Towards the end of last November I was very fortunate to be the Chair of Osney Media’s Client Reporting and Communications Conference. It was a well-attended event, covering a number of very important subjects. The speakers and panellists were all senior and experienced people from investment managers, major institutional investors, and key industry bodies.

I came away from the two-day conference with a strong sense that the world of client reporting and communications is a world in transition. But it is not a straightforward transition. There is a lack of clarity and consensus on where we are heading, and there are hidden obstacles in the road ahead that are going to make it a very bumpy journey.

Over the next two weeks I want to share some of my key takeaways from the conference. This week’s post will look at the implications arising from the continuing introduction of a long stream of new regulations. Next week’s post will look at the growing disconnect between investment managers and their clients.

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Topics: Market Trends

Industry Challenges in 2016: Harnessing the Old to Make Way for the New

A time for looking back

December is the month in which we reflect back on the year that is almost behind us, and look forward to the one that is almost upon us. It’s a time for objective analysis of the things that we could have done better, and for forming the resolutions that will guide us over the next 12 months.

As you look back at 2015 what would you say are the big challenges and trends in performance and risk that were headline news during the year?

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Topics: Support & Implementation

Fixed Income Attribution - Why Do We Make It So Hard For Ourselves?

Performance attribution is a key technique in identifying positive and negative contributors to a portfolio’s investment performance. So, it would be reasonable to assume that it is widely used to explain to management and investors where portfolio managers added and lost value, wouldn’t it?

Well, this isn’t necessarily the case. It depends on the type of portfolio. Performance attribution is widely used for equity portfolios, but not for bond portfolios. And many of those who are using fixed income attribution are dissatisfied to some extent with the results it produces.

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Topics: Performance & Attribution

Leveraging Investment Performance Teams to Enhance Investment Strategies and Relationship Management

On September 30, a panel of investment performance measurement experts came together for a virtual roundtable hosted by BI-SAM. Participants included Daryl Bradford of Acadian Asset Management, Stephen Saffhill of Barings London, and Peter Ellis of PK Consulting Ltd., who moderated the discussion.

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Topics: Performance & Attribution

The Investment Risk Knowledge Gap

Most of you reading this blog will have a pretty good understanding of investment performance. Even if you are not a performance analyst, you will probably know that a performance return is the difference between the values of an investment at different points in time, expressed as a percentage.

But what about investment risk? Excluding those of you who work in investment or performance teams, can you come up with a snappy description of investment risk that will be understood by everyone just like you could do for performance?

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Topics: Risk Management

The "Butterfly Effect" in Client Reporting

The butterfly effect is a term used in chaos theory to describe situations where there is a highly sensitive dependence between the internal components of a system, such that a small change in one part of the system results in significant and disproportionate consequences in the other.

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Topics: Data Management

Data Visualization

I was recently on holiday and decided to go for a long walk in the country guided by a set of detailed instructions. Things didn’t go well. Despite the detail of the instructions, I became a bit disorientated and uncertain as to where I actually was. Fortunately, I had a GPS app on my phone which had a detailed map and so I was able to work out exactly where I was, where I had gone wrong, and how to get back on to the right path. This made me realize that it isn’t sufficient to have a set of detailed written instructions when you head out on a 20-mile hike, you need a visual frame of reference so that you can position yourself, and the instructions, with respect to the landscape, i.e. a map.
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Topics: Data Management

The Business Capability Drag

Somewhere there may be an ideal world in which everything happens how, when, where, and why it should happen. Have you ever been there? If you have, let me know where it is because I've spent all my life in the real world. In the real world things rarely happen how, when, where, and why they should happen.

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Topics: Performance & Attribution