InvestTech Systems Consulting, a leading investment technology and operations consulting firm for institutional investment managers, recently developed a series of frameworks to guide its consultants and clients through the various stages of performance measurement and attribution initiatives, from business solution strategy, client readiness assessment, requirements review, vendor solution evaluation and selection, to implementation.
The cornerstone of these frameworks is a method of developing high-quality business requirements based on a firm’s organizational structure, investment policies and strategies, and investment performance principles. Through custom-designed questionnaires and structured discussions, this methodology assists clients to delineate the steps needed to extract business requirements masked by legacy practices and solutions.
Hsiao Chu, Senior InvestTech Consultant and Performance Specialist commented, “The challenges of engaging in a performance and attribution effort are numerous, with requirements gathering often the most difficult to execute. With the structured framework that InvestTech has employed in past engagements, these types of challenges become manageable, and a complex effort such as fixed income attribution not only become transparent, but its value becomes readily evident.” Mr. Chu went on to add that “By approaching performance and attribution in this framework, there is greater clarity and improvement in the investment decision making process and operational work streams.”
Together with investment process and operations review, enterprise data management, vendor evaluation and selection, these frameworks are integral elements of consulting services that InvestTech brings to asset managers in their performance measurement and attribution initiatives. InvestTech believes that while firms differ in investment philosophies, business models, and commercial and regulatory circumstances, these frameworks are applicable to all firms, especially those with structured investment processes, high asset utilization targets, and complex investment programs.
InvestTech has assisted in the development and implementation of in-house developed Performance, P&L, and Attribution solutions, as well as vendor provided solutions including FactSet, Eagle, BI-SAM, SimCorp, Barra, StatPro, Advent, SunGard, SS&C, CAPS, DSTi, Thomson, First Rate, and Wilshire.