Equity Attribution Systems

Date: May 20, 2015

A paradigm shift in speed, accessibility and cost

The advancements made in the once primarily internal and excel-based world of performance analytics of the 90’s has been dramatic. 

The previously cumbersome and inefficient front office performance analytics systems have evolved to a point of near instantaneous access to portfolio performance. As a result performance analytics has become an essential part of the asset management process, used across the organization for management reporting, portfolio management and research, client service as well as monthly/quarterly reporting.

Given the advancements made in the performance analytics space, it can be said that the calculation and nuances of equity attribution have been marginalized and commoditized over time, while the requirement for sophisticated robust results remain high. The Brinson Model of attribution calculation with capabilities of custom classification, long/short requirements, currency, and other once unique features are now standard functionality available from the various players in the marketplace.

Yet the demand for performance attribution while much more robust and user friendly than it once was, is being serviced with tools and products that offer restricted user level access, through hosted systems that base their access model on:

  • desktop access
  • batch reporting and distribution
  • limited real-time access.

This model inherently limits the way in which the performance analytics data is calculated, distributed and consumed and drives up the resulting costs and inefficiencies associated with these off-the-shelf tools.

However, with new technologies available, these inherent barriers to performance analytics calculation, distribution and costs, are thankfully coming down. Through increased speed of calculation, more open distribution and the scalability cloud computing offers, the limitations once faced are being removed. And with these advancements, the market is demanding broader access and speed, rejecting the limitations and costs associated with a desktop and batch reporting/data file pricing model in favor of more instantaneous access to information across the organization at a lower cost point.

StatPro Revolution, a pure cloud-based portfolio analytics service built from the ground up, is a highly scalable, ultra-fast, secure and cost effective. StatPro Revolution offers a robust, user-friendly advanced equity attribution solution following the Brinson Fachler methodology. The attribution models offered include top-down, bottom up and multi-currency attribution. In addition, we offer the following features for all portfolios:

  • unlimited user access
  • unrestricted publishing
  • open API.

Through our offering we allow our clients to distribute the sophisticated analytics calculations required without limitation, internally or externally, providing unrestricted access to their performance calculations they have come to expect.

Author info:
Daniel Potvin, CFA, is a Sr. Business Development Manager for North America at StatPro Inc. Boston. In his role, Dan leads the North American Portfolio Attribution Business Development team focusing on delivering performance attribution and analytics to the asset management market place.  Prior to his recently joining StatPro, Daniel spent 19 years in the financial services asset management market space including 17 with FactSet Research Systems. Dan graduated from Rochester Institute of Technology with a BS in Applied Mathematics. He is a CFA Charterholder and a member of the Boston Security Analysts Society.

To learn more about 13f-2 watch our webinar replay Part 1: Unpacking the SEC's New Disclosure Rules for Shareholders
Join us for Part 2: Operationalizing the SEC's New Disclosure Rules, for Shareholders on December 12.