For Your Interest…

A blog about software, technology and efficiency

Why Asset Managers are Migrating to Cloud Data Warehousing

 

Cloud data warehousing is more than just a buzz word. It is the underpinning of a giant technological shift in the way all kinds of firms store, process, and analyze the ever-growing amounts of data critical to their business.

Capital markets firms have traditionally been slow to move, but outside finance, momentum is building. Here at UBTI, we have seen firsthand the surge in asset managers that want to store their data in the cloud instead of on-premise.  

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Topics: finance, Technology, cloud, Data Warehousing

3 pre-requisites for data management in asset management firms

Asset managers make critical data-driven decisions on every business day, unlike other industries where such decisions are made relatively less frequently.

In the case of asset management firms, when there is a change in the rating of a security, it has greater implications on its price, which requires the attention of the asset managers. This is one such example reflecting the criticality of data in asset management firms from the day-to-day operations perspective.

In our experience, serving asset management firms, we have come across many such scenarios, including monitoring and maintenance of percentage of asset allocation in portfolios, clients’ investment preferences, benchmarking performance, tracking corporate actions, maturity of bonds, expiry of futures and options, calculation of NAVs, abnormal dynamics in the price of securities, etc. All these scenarios demand instant monitoring and notifications, and timely decisions from the asset managers.

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Topics: finance, Database Management

Top Fintech Trends for Asset Managers in 2019

Automobiles, healthcare, entertainment, personal banking… it seems every sector in the world is undergoing rapid disruption at the hands of technology. Financial services, though often slower to adapt than Silicon Valley, is no different. A growing base of Millennials investors is forcing firms to rethink everything from portfolio construction to digital customer support.

Here’s a look at the top three fintech trends to keep an eye on this year.

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Topics: finance, Technology, FinTech

Setting Up Data Integration for Asset Management Firms

Having a centralized data repository (CDR) fitted with a data quality business rules engine sets asset management firms on the path to better data management. The next step is to integrate the data between the source and target systems via the CDR. This step would result in time and money savings, reduction in user tickets and faster issue resolution (if any).

For asset management firms, the source and target systems primarily include the:

  • Third-party data feeds
  • Order management system
  • Customer relationship management (CRM) system
  • Accounting system
  • Compliance solutions
  • Reporting systems
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Topics: finance, Data Integration

Your Guide to Choosing the Right Version of SQL Server


Time to read – 3 minutes

This blog post will help you determine the best version of SQL Server for your organization’s needs.
 

Continuous Improvement

Data management gets a little easier with the release of each version of SQL Server.

With each new version, the performance gets enhanced through the introduction of new functions that previously required complex coding. Security features and analytics capabilities generally also get a nice tune-up.

With each new version you may think, “it can’t get any better than this”, but alas, the thought only prevails until the release of the next version!

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Topics: Technology, SQL Server, Database Management

GIPS 2020 Standards - One Size Doesn’t Fit All

The background

It’s been almost a decade since the CFA Institute unleashed the 2010 Global Investment Performance Standards (GIPS) to homogenize the way asset management firms calculate and report performance to investors. As we head into 2019, the powers that be are attempting to tie up some loose ends.

The weakness of GIPS 2010? In three words — ‘lack of scope’. The guidelines as originally written were not broad enough to cover alternative assets in the capital markets like private equity, real estate, private wealth and so on. All of this resulted in a lack of buy-in from firms who wanted to comply with the standard but whose portfolio management activities didn’t fit neatly into the categories described in the framework.

GIPS compliance has always been more of a gentlemen’s agreement than a regulatory requirement — and its success depends on voluntarily adoption. And so, the GIPS Executive Committee learned the hard way that one size doesn’t fit all.

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Topics: finance, GIPS 2020

Data Quality Framework for Asset Management Firms

The Centralized Data Repository (CDR) setup for asset management firms acts as the foundation for the data management initiatives. This is the first step towards achieving a single source of truth and eliminating siloed operations.

The next step is to ensure the quality of the data (that will be stored and managed in the CDR) meets the desired standards. For this purpose, data profiling is critical. Data is profiled in terms of its attributes, patterns, and functional dependencies, which in turn is analysed to create the business rules engine.

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Topics: finance, data quality framework

Foundation of data management in asset management firms

Data serves as the nerve center for asset management firms. The securities pricing data, ratings, corporate actions data, NAV etc. are mission critical for asset managers to make the right investment decisions. The compliance team, on the other hand is in need of effective data management to file compliance on time, and avoid penalties.

Most asset management firms incur costs by purchasing data from third-party vendors like Bloomberg, Factset, Rimes, Fitch etc. However, they find it extremely challenging to manage this data, and often fail to leverage it, as this data is unstructured from a holistic perspective.

In the end, asset managers are forced to analyze this unstructured (or semi-structured, in some cases) data and make investment decisions with great difficulty, while the compliance team is forced to file compliance in the nick of time.

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Topics: finance, Centralized Data Repository

Are robots taking over asset management?

Don’t believe the hype. Asset managers aren’t under the control of artificial intelligence (yet). But many shops currently engaged in "data science" programs are motivated by the same fear; that every other manager out there is secretly building the next-generation of robot, capable of making faster, more accurate predictions about the market than any human.

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Topics: finance, Data Science for alpha generation, Automated investments

The Quest for Real-Time Data from Aerospace Suppliers

Aerospace firms would benefit enormously if their suppliers shared process capability data from their lines. But first, you will have to overcome a supplier’s reluctance to share data from their equipment. The key to doing so is conveying the benefits for both parties, such as an enhanced relationship and being able to identify issues as early in the process as possible, which reduces costs for all parties.

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Topics: Process Measures, Aerospace ToolsQA, Aerospace Supplier Performance, Cost of Quality, Change Management, Supply Chain Transparency, Aerospace SQC