Twenty years ago, hedge fund technology became a necessity to help firms monitor leverage and liquidity, identify complex instruments and understand notional exposures. As new regulations and higher demand from investors arise, the required information from accounting firms tripled in number, calling for more comprehensive technology that can provide front-to-back platform solutions.
While there are a lot of hedge fund technology solutions available in the market today, here are the questions that managers should consider when it comes to choosing the right platform:
Does it have a secure research/data management system? A reliable research/data management system has the capacity to consolidate and at the same time filter data from multiple users, including but not limited to prospects, investors, internal users and other key players. Look for a solution that can simplify the complicated process of investor communications and delivery, such as performance reports, prospectuses, data charts and more.
To maintain the confidentiality of information shared in the network, a password-protected web portal is a must in this category. Also, to strengthen security, an audit trail feature can help to track in-house administrative users who upload each document.
Does it offer a comprehensive portfolio management system? An attempt to maximize returns won’t flourish without a comprehensive portfolio management system. Companies must choose a platform that can manage and display a portfolio of investments information to clients and investors in real-time. This will allow the executives to pattern key financial and business decisions in accordance with the reports based on various project objectives, resources, risks, costs and other pertinent associations.
Does it have compliance tools? On top of the Dodd-Frank Act, new regulations could also affect financial institutions including hedge funds. Because of this, it is important to go over the compliance tools of a particular platform to find out if it provides timely, accurate and transparent information that can help both the firm and the investors meet regulatory compliance.
Is it a cloud-based solution? The recent and most secure trend when it comes to hedge fund technology today is the shift to cloud-based solutions. "(In 2014), over 90% of our community members that are in the buying process for enterprise software are evaluating SaaS-based solutions to replace existing on-premises applications," says product review site IT Central Station CEO Russell Rothstein.
Basically, the transformative benefits of moving to software as a service (SaaS) from on-premises software are security and accessibility.
For the most robust hedge fund technology can represent your firm’s strategy, process and infrastructure clearly and efficiently, seek help from a trusted financial marketing agency that offers this solution.
