Operation due diligence staff at asset owners—and their consultants—have become aware of last-mile issues at investment management firms, and many are now asking asset managers probing questions about how they handle the last mile.
Our advice: Forewarned is forearmed! Don’t let your firm be caught off guard by inquiries into your last-mile policies and procedures. Your marketing/operations staff should be able to answer the three questions below, address any flaws in their processes and procedures, and craft good answers for use in DDQs/RFPs and client/consultant meetings:
- Please describe the processes used to calculate investment performance and portfolio attribution data for this product. Include systems used.
- Please describe the quality assurance review process to verify accuracy of calculated data.
- Does portfolio performance and attribution data flow directly into client reports and marketing presentations through a fully automated source-system-to-output process?
These are just top-line questions, of course. A real RFP/DDQ request would drill down much deeper. To see a more complete sample of the types of questions asset owners and their consultants are asking investment managers, click below to read our recent blog post.
Assette leads the industry in identifying “last-mile” problems at asset management firms. The CFA Institute, Investment Adviser Association and National Society of Compliance Professionals have highlighted our work. The last mile is where investment managers take data from multiple sources and use a hodgepodge of semi-automated and manual data-entry processes to populate marketing documents and client reports.
Assette is also the industry leader in solving last-mile problems with cloud-based software that automatically integrates data from your accounting and analytics systems to generate marketing material and eliminate manual work.
If you’d like to learn more about how Assette can help your firm avoid last mile issues, please click here.