BISAM Insights Blog

What Does the Front Office Need from H­eads of Performance?

Posted by Dean McIntyre, Director of Performance Strategy, FactSet on Apr 12, 2017 8:30:00 AM

There’s no getting away from it: the relationship between the performance measurement team and the front office can be combative at times. Fund managers have their own—indicative—performance and risk systems, and do not always enjoy being challenged with inconsistency.

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Topics: Market Trends, Performance & Attribution

Rise of the Robots

Posted by Sean Murray, Director of Product Strategy, BISAM on Apr 5, 2017 8:39:47 AM

BISAM was pleased to present at last week’s Portfolio Risk and Performance Measurement forum hosted by Financial Research Management. Our presentation focused on integrated performance and risk, and the role technology has played (and continues to play) in shaping the topic. We presented a number of options a firm should consider as they deploy performance and risk technology, and the pros and cons of each option.

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Topics: Data Management, Market Trends, Performance & Attribution, Risk Management

Buy Side Risk Europe – “Avoiding crowds and modeling endogenous risk” Discussion Summary

BISAM was very pleased to sponsor last week’s Buy Side Risk Europe 2017 conference in London, to share views and discuss the latest operational and technology trends with the European asset management community. Boryana Racheva-Iotova, BISAM’s Global Head of Risk, took part in a panel discussion on Avoiding crowds and modeling "endogenous" risk. Here is an extract of the questions and key points expressed by the panelists.

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Topics: Market Trends, Risk Management

The Elegance of Simplicity: Basic Tenets of Technology

Posted by Sean Murray, Director of Product Strategy, BISAM on Mar 1, 2017 8:30:00 AM

I recently saw the movie La La Land, and it got me thinking about the current state of technology in our industry.  You’re probably thinking “he’s nuts - how could a blockbuster musical possibly align with technology in our industry?”  Easy: the elegance of simplicity.

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Topics: Data Management, Market Trends, Performance & Attribution, Risk Management

2016 Year in Review: POINT, Brexit, Elections, Oh My!

Posted by Erika Alter, Global Head of Commercial Strategy, BISAM on Dec 28, 2016 1:01:47 PM

’Tis the season for year-end reflection, so drawing inspiration from last week’s farewell post by Peter Ellis, I asked several of our regular BISAM blog contributors to share what they deemed to be the biggest surprises of 2016, and their predictions and recommendations for 2017. To be sure, Bloomberg’s announced acquisition of Barclays POINT and this year’s geopolitical landscape - from Brexit to multiple global elections - reigned as the biggest surprises of 2016. The impact of these events remains to be seen as we move into 2017, but will undoubtedly increase demand from investors, regulators and internal stakeholders when it comes to portfolio analytics and the need for ever-more innovation in the ways that firms approach, manage and report on performance and risk. To that end, here are some final thoughts for the year from our BISAM Insights team…

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Topics: Market Trends

A Final Word From Peter Ellis, and a Fond Farewell!

Posted by Erika Alter, Global Head of Commercial Strategy, BISAM on Dec 21, 2016 8:00:00 AM

A couple of months ago, Peter Ellis, renowned PMAR expert and valued advisor to BISAM, took the decision to retire at the end of this year. Or as he put it, “it’s more of a semi-retirement, as I will continue to advise the industry here and there.” We will miss Peter’s insights and contributions, but we are pleased for him and wish him well on his adventures in retirement. In the following post, Peter reflects on his time at BISAM and the ever-evolving performance and risk industry, and offers words of encouragement for the future. I hope you enjoy reading it as much as I did. And now, here's Peter...

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Topics: Fixed Income Attribution, Market Trends, Performance & Attribution

"Buy vs Build" in Performance Analytics

To build or to buy? As solution providers, this is an ongoing debate and one for which we certainly have a particular opinion. BISAM regularly speaks with firms to help them answer the question: when it comes to Performance and Risk solutions, should we buy, build or both? And as we’ve all seen in more recent years, the trend has clearly leaned towards the “BUY” of the equation, as outlined notably during the latest Buy-Side Technology North American Summit.

When it comes to Buy or Build, there are a number of things to consider: What is the required time to market? Does the organization have the right skillset? What will be the Total Cost of Ownership for the platform? Etc.

BISAM addressed these points in a detailed white paper just a couple of years ago, and the arguments remain fresh and current in favor of the “buy” trend.

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Topics: Market Trends, Performance & Attribution

Buy Side Challenges and Priorities Vary Upon AUM Size

The AUM level of an Asset Manager appears to have a direct and significant impact on the operations, priorities and challenges of a buy-side organization, according to BISAM’s latest market survey of C-Suite professionals across the buy-side. The survey report outlines that AUM size factors greatly into “change the firm” focus.

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Topics: Market Trends

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

Solvency II & Risk - It's All Granular

Posted by Erika Alter, Global Head of Commercial Strategy, BISAM on Jan 19, 2016 9:58:21 AM

Last week I wrote that the BISAM Insights blog is widening its scope in 2016 to bring our readers various points of view and intel on topics and trends across performance, attribution and risk - expanding beyond traditional discussions of performance measurement to look more closely at the broad spectrum of portfolio analytics. It is with this goal in mind that I found myself reading a Financial Times Q&A in early January, which outlined Solvency II and its implications on European insurance firms, and those global insurance firms with operations in Europe. Since Solvency II went into effect on January 1, requiring that “assets and liabilities be marked to market more closely than they were before,” I’ve seen a flurry of thought pieces about the impact of this regulation on firms’ operations and risk management processes.

So what does Solvency II mean for insurance firms in terms of adjustments to their operational processes, the pain points related to those adjustments, and what they should expect from a risk management platform in terms of helping to support their compliance with Solvency II?

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Topics: Market Trends, Risk Management