The wealth management industry is on a rapid growth trajectory, with AUM projected to increase by as much as 50% between 2020 and 2025, according to the Business Research Company1
As we begin to see the pandemic in our rearview mirror, we still see some of the same old requirements on the road ahead – reducing costs and operational risks, improving data quality, and delivering compelling and worthwhile products to our customers.
It’s no secret that the 2008 financial crisis served as a major turning point for asset managers and in particular their compliance and regulatory oversight teams.
Rule 22e-4 is specifically aimed at quantifying liquidity risk in most mutual fund and ETF portfolios – particularly, the risk of a fund being unable to meet redemption requests without significant impact on its remaining investors. The regulation comes with a host of challenges leaving fund managers looking for an efficient, scalable solution.
In the post-Solvency II world, asset managers with insurance clients are grappling with additional layers of complexity. In addition to incorporating the cost of capital into the asset allocation process, they are also required to fulfill an extensive set of reporting obligations, leading them to partner with external vendors to implement a cost-effective and efficient workflow.
While building composites is common among institutional asset managers, private wealth managers have not adopted them to the same degree – but a shift is already underway, and this will continue to change as wealth managers face renewed scrutiny.
Major global financial institution integrates Confluence’s composites solution for regulatory reporting and uniform performance measurement standards to increase scalability, speed, usability and functionality.
Revolution empowers the performance team at a London-based wealth manager to build valuable, long-term relationships with 1000’s of clients through delivering more detailed reports.
Confluence’s cloud-based performance measurement and portfolio analytics solution, Confluence Revolution, facilitates National Australia Bank in reducing the turnaround time for delivering performance and risk analytics to stakeholders.
Download our latest whitepaper which demonstrates through worked examples how, why and where totals’ reconciliation differences can arise multi-period. Authored by Ian Thompson, PhD., Chief Performance Advisor, StatPro and Paul Giles, Owner, Teachins.
Dario Cintioli, Managing Director, explains the Confluence approach for measuring liquidity risk. The traditional problem of liquidity risk is that the data needed for calibrating these models is only available for liquid instruments, trading on a regular basis and for which books of bid/ask and volumes are available.
Confluence uses a number of external sources for bond prices, foreign exchange and curves, including the trading desks of major investment dealers and banks. The Confluence dealer network represents the top professionals in their respective sectors.
Mark Evans, Founder & CEO of Confluence, explains the new Confluence brand.
Andrew Peddar, StatPro Group COO, discusses the opportunities and challenges facing Asset Service Providers and their middle office outsourcing services.