The Shifting Focus in Performance Measurement: Putting Client Needs First


By Todd Moyer, Executive Vice President, Global Business Development at Confluence

The demands of today’s more sophisticated investors are shaping the evolution of performance measurement functions and systems alike. Better transparency, greater in-depth analysis, and meaningful reports provided faster and with more context, are directly impacting how performance systems and teams will meet the increasing demands of their clients.

In the last couple of years, the asset management industry has probably focused more heavily on regulatory bodies than their clients, trying to satisfy the many new reporting requirements and managing more data than ever. This is no surprise given the pressure brought on by regulation. There needs to be a balance, however, and clients—the investors—need to take center stage.

We’ve seen a shift recently among firms looking to address this need. The industry is seeking a solution that addresses the growing need to deliver accurate, consistent, transparent and timely information in an automated fashion. Meeting these client needs is what has driven our product development process over the last several years. The number one request we’ve had from our clients is to help them meet and exceed client expectations and transform their data into information that provides meaning and context to their clients Solutions, therefore, need to empower asset managers to create an information-driven client model, where the clients are at the heart of every decision.

Todd Moyer, Confluence

Todd Moyer, Confluence

We’re also hearing that firms want a solution that can help them streamline their performance reporting systems and reduce the number of vendor relationships they manage. Powerful performance reporting solutions have been available for both mutual funds and institutional portfolios for years. The industry is now demanding that performance reporting solutions be able to address the needs of both businesses through a single platform.

When it comes to performance reporting, being able to put the clients’ needs first requires technology that is scalable and flexible. Asset managers need to be able to grow and change their processes as their clients’ needs and preferences evolve. A big part of our focus when developing solutions for clients is to ensure what we are developing will enable clients to remain nimble and proactive in the current market environment. Those solutions must also help managers streamline their day-to-day operating model and be customizable to meet the specific performance and analytics reporting needs of the largest asset management firms.

Most importantly, solutions need to be automated. There is a huge drive in the industry to eliminate manual reporting processes in the back office. By automating performance reporting, firms can streamline the reporting process and free up their performance team to spend more time on analysis, rather than addressing manual exceptions and cross-referencing numbers. That capability delivers meaningful value to managers and investors alike.

While the last couple of years have required the asset management industry to focus on meeting new and stringent regulatory reporting demands, now is the time for the industry to return its attention to the investor. Managers who harness the wealth of data they now possess have the opportunity to transform their business into an information-driven client model. And by doing so, they will position themselves to exceed the demands of an increasingly sophisticated investor community.

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