FinanceThe Complete Portfolio Analytics And Reporting Platform

akanshaverma255December 4, 2020467 min

Portfolio research and operational analysis services are used by asset managers, finance consultants, pension advisors, and hedge fund managers of an organisation. These services help make decisions relating to resource allocation, formulating strategy for maximum output, and managing industry risk to minimise financial loss. Portfolio analytics and reporting services use advanced technological tools and capabilities so wealth managers can compile, analyse, and report on clients’ asset documentation.

The following is a list of services offered by portfolio management platforms that you could tap to boost your organisation’s performance:

Performance measurement and attribution

Measuring a portfolio’s performance is integral to calculating the quality of an investment manager’s decision-making capabilities. It helps both asset managers and clients understand the process used for investing funds as well as the result of that particular process.

Performance attribution enables stakeholders to understand the reasons for the difference in a portfolio’s performance compared to the benchmark. This difference is also known as “active return”. Attribution analysis helps determine whether “stock picking” or “market timing” was mainly responsible for the portfolio’s performance.

A performance analyst is required to measure performance and track attribution across portfolios. By using solutions provided by an outsourced partner, the performance analyst can enhance the investment decision-making process. Such a solution would provide clear insights, enabling the performance analyst to determine how much value has been added and who was responsible for adding value.

Risk analytics and reporting

Risk management plays a critical role in ensuring optimal returns for an investment portfolio. Asset managers have to keep tracking risk ratios, what-if scenarios and other risk-related metrics. The true risk of a portfolio can be estimated by integrating risk models into the portfolio. Regulations would also need to be complied with, and complex reports generated to meet both investor and regulatory requirements. Examples include market risk reports, credit risk reports, investor reports, custom risk reports and regulatory reports. Ad hoc reporting needs would also have to be met. 

Engaging a partner that can provide these requirements would be critical. 

Bespoke portfolio analytics

Different investors have different requirements. Risk-averse investors would be keen to maintain a conservative portfolio, whereas growth-oriented investors would be inclined towards maintaining an aggressive portfolio. There may be other investors who desire a balanced approach. Drilling down further, we discover that each investor has a customised pattern of investing. Investors appreciate customised insights, as they enable them to make highly accurate investment decisions. 

By engaging with a partner that can deliver bespoke portfolio analytics, asset management firms would, therefore, be able to offer powerful insights to investors. Rather than generic inputs, they would be able to provide specific and perceptive advice that would add substantial value to an investor’s portfolio. Bespoke portfolio analytics solutions would also be able to highlight investing behaviour, which could be altered based on the investor’s request or recommendation.

Client and investment reporting

Providing holistic reporting options to clients not only enables them to understand the value offered by an investment management firm but also helps build transparency. Asset management firms may also desire a platform that can offer customised reports. Such reporting solutions should be generated via automatic workflows and not require manual intervention. Information to be represented in reports may have to be pulled from multiple databases and systems. We also recommend that reports be displayed in a visual format to ensure deeper understanding. By engaging a solution provider to enable this, your company would be able to strengthen client relationships.

An evolved portfolio analytics and reporting tool can become a prime differentiator between your company and your competitors. Such a tool would not only offer significant value to existing clients but would also enable your company to sign on new and influential investors. It could also generate actionable insights to improve portfolio management performance. Therefore, by engaging a partner that can provide a holistic portfolio analytics and reporting tool, asset management firms could effect a significant transformation in the way business is conducted.


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