SimCorp, a leading provider of investment management solutions and services for the global financial services industry, today announced a collection of technology resolutions that buy-side firms should keep in 2013. The list focuses on technology improvements that drive portfolio value, provide competitive advantage and allow asset managers to comply with the current onslaught of regulatory reforms. SimCorp’s technology resolutions for buy-side firms include:
1. Pay greater attention to operational excellence in the back-office – Asset managers should take the time to understand if outdated back-office systems are impeding investment performance.
2. Invest in an “IBOR” (Investment Book of Record) – A solid IBOR delivers a single source of truth for both front- and back-office users that provides a holistic view into assets and exposures.
3. Evaluate multi-asset class systems that accelerate time-to-market for new securities – Firms should look to automate front-to-back office workflows on a single platform to accelerate time to market for even the most exotic instruments.
4. Leverage funding for regulatory reforms for enterprise “make-overs.” – If the buy-side looks at regulation in piecemeal, asset managers are missing the chance to unleash compliance dollars to improve enterprise architecture. With reforms like Dodd-Frank, EMIR and Solvency II come opportunities to make changes that drive investment performance.
5. Realize that portfolio accounting matters – Many buy-side firms are closer to insolvency than they realize. Those that evaluate and transform their accounting systems are the ones who will stay ahead of the competition because they will understand with great detail, ‘what they own’, ‘what it is worth’ and ‘their total exposure’.
6. Understand the implications of data management for client reporting – A focus on centralized position-keeping for improved data quality and greater data accessibility will be a key competitive differentiator.
David Kubersky, managing director for SimCorp North America, explains, “A proactive approach in using technology to drive innovation and growth will well-position buy-side firms for 2013 and beyond. Those that take a ‘wait and see’ technology stance risk finding themselves ‘watch and implode’ as market dynamics out-run the outdated portfolio management systems in place.”
