Portfolio Management System: An Investment for Alternative Asset Managers

Over the past years, the alternative asset management industry witnessed the emergence of increasingly complex regulations, as well as the growing demands among client investors. One of the results of this development is the mainstreaming of such technologies as a portfolio management system.

In the past, such kinds of tools are considered optional and are accessible only to managers with bigger funds. Today, their features have become indispensable: They help different types of firms simplify their day-to-day operations, as well as accomplish their long-term goals. Below are some of the common benefits of adopting a portfolio management system:

Supporting efficient and accurate reporting

With the detailed requirements of the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Alternative Investment Fund Managers Directive (AIFMD), among other regulatory bodies, alternative asset managers need to store and manage a significant amount of data. The latest portfolio management software solutions have features that can handle data storage efficiently according to a firm’s size of operations and budget.

Facilitating comprehensive client communications and transaction monitoring

Asset management involves a fair amount of client relations. Communication with clients and brokers then needs to be stored properly and accurately to promote the integrity of each transaction. Transaction records – from the client orders to the actual trades – should be securely kept but also made easily accessible to support informed decision-making.

Facilitating compliance management

To ease the task of ensuring compliance, asset managers can also take advantage of such features as automated reminders for deadlines of document submission, along with compliance certification features. They can break down the tasks to be accomplished in relation to industry regulation, then list them down on a calendar integrated in the system. This way, each firm can be 100% sure about being able to meet its compliance duties.

Ensuring prompt and precise portfolio monitoring

Alternative asset managers also need to be armed with a platform that allows for prompt and precise monitoring of positions in securities. The more updated ones have dashboards that include monitoring limits, recording trade allocations, and blocking prohibited trades.

In the end, the best portfolio management system comes with applications that suit the alternative asset management firm’s particular needs and budget. It complements the existing infrastructure, operational processes, and supports its investment strategies of choice. As such, it helps the firm keep their costs of operations down, while also streamlining the procedures that define efficient asset management.