Maintaining Quality Investment Performance Measurement and Reporting Amid Increased Pressure

The investment industry is undergoing significant transformation due to technological advancements, shifting investor preferences, and regulatory reforms. These changes are evolving in line with wider macroeconomic pressures, including the rising cost of living, growing inflation rates, and the threat of recession. 

In addition, financial services firms around the globe say they are experiencing significant difficulty recruiting and retaining skilled compliance and performance team members. The escalating pace of regulatory change around the globe, and the need for more people to undertake new or expanded forms of compliance processes, has driven a talent shortage and increased turnover. What’s more, staffing costs are growing while budgets remain the same. 

This environment of heightened regulation and increasing scrutiny and costs is placing significant pressures on firms, affecting their ability to deliver competitive returns to investors, and maintain high levels of service quality.  

Management of these costs requires firms to adopt more efficient and effective investment performance measurement and reporting processes, and leverage technology and specialized expertise to reduce the burden on in-house resources. 

In our recently released paper, we explore how some firms are solving these resource challenges by: 

• Exploring the case for managed services – a form of outsourcing – to address contemporary industry trends and concerns that are making the investment landscape increasingly complex and competitive. 
• Examining best practices investment managers should be aware of when utilizing a managed service provider to help ensure a successful relationship. 
• Debunking common concerns, discovering best practices, and uncovering solutions to help firms overcome perceived challenges.  
• Looking into real-scenario case studies to see how firms benefited from performance managed services. 

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How we help

Utilizing ACA's Managed Performance Services solutions allows firms to leverage unparalleled expertise, scalable solutions, and significant cost savings. In addition, collaborating with us can enhance service offerings, strengthen risk mitigation, simplify the intricate investment process, and seize opportunities for growth and innovation. 

Firms can outsource all or certain aspects of their performance measurement and reporting functions with the assurance they are working with a team that not only understands the technical aspects of calculating complex performance, but also knows industry best practices and regulatory expectations. Our suite of services includes: 

• Portfolio and fund performance calculations 
• Composite management and performance calculations 
• Global Investment Performance Standards (GIPS^®) compliance oversight and verification management 
• Risk and other performance-related statistics calculations 
• Gross and Net Money Weighted Return calculations (fund and deal level IRRs) 
• Private fund management fee and performance-based fee review and reconciliation 

If you would like to get in touch with our team today, we're ready to help. Start a conversation with us here.