Portfolio management is a complex business. Aside from requiring thorough and regular monitoring of asset performance, managers need to deal with growing demands for transparency and oversight in and outside of the investments and securities industry. Thankfully, these challenges can now be addressed with the adoption of a good portfolio management system.
Below is a discussion of some of the benefits of investing in the best version of this tool.
Keeping up to date with industry developments. With the help of a portfolio management system, client-investors can be provided with reporting tools that are always available online. This allows asset managers to look at upcoming trends, assess their impact on the fund’s performance, and accordingly prepare measures that address emerging risks.
It offers a comprehensive view of all factors needed in making investment decisions. Portfolio management is about dealing with a lot of metrics, and using the insight derived from them to guide future actions. The best of breed portfolio management systems offer a consolidated view of past transactions, the assets under management, and cash flow, allowing for quick and sound decision-making.
Complying with all pertinent regulations becomes much easier. The past financial crises and major investment scandals truly rocked the industry, and spurred a number of government regulations designed to protect the interest especially of the client-investors. But dealing with all of these tight regulations is a huge and time-consuming chore for most firms. When they fail to comply, they are subject to penalties and legal action, on top of seeing their reputation crumble. By adopting a portfolio management technology, most of the procedures related to compliance can be automated, such that the entire process need not take up so much of the company’s resources.
It enables strategizing towards the achievement of financial goals. With a cloud-based portfolio management system, asset managers are able to gather all the data they need in one hub. This in turn allows them to provide all the relevant stakeholders easy access to files, enabling collaboration. When portfolio managers, fund administrators, and other third party service providers can effectively and quickly exchange information, the experience of asset management becomes a seamless process that fosters quick return on investment (ROI).
Firms may invest towards the set-up of in-house portfolio management systems, or access these through top asset servicing firms. These firms can develop proprietary tools, on top of handling a full range of back and middle-office functions.
