A new report from Finadium report analyzes the market for performance measurement systems in institutional investing and asset management. The interest in outsourced arrangements and third party technology among producers of performance data has resulted in a plethora of performance measurement providers. An increase in hedge fund and private equity investing has complicated the ability of investors to select calculation methodologies that effectively measure performance across an entire portfolio.
This report is based on primary Finadium interviews with users and service providers of performance measurement. We also gathered data on consulting firms, custody banks, performance software providers and asset managers, with a focus on the competitive dynamics and levels of cooperation between global custodians and third party vendors.
Highlights from this report include:
Performance providers will need to expand their offering to include risk measures and calculations as part of the performance process.
Technology has become a critical component for performance measurements, incorporating not only publicly traded products but OTC and illiquid products as well.
Asset managers are considering outsourcing performance measurement as a realistic possibility; there will be over 15 RFPs or RFIs this year from large global managers, up from three just a few years ago.
D.C.