Seamless Performance Attribution Implementation & Integration
Our agile cloud-based system makes implementation much faster and simpler than traditional models.
The cloud nature of the system allows us the flexibility to match your data structures taking the burden of mapping them off you. Rethinking the attribution has allowed us to require a much smaller and simpler analytics universe.
Implementing a performance attribution software solution needs flexibility and attention to detail to get right. We take your input data in whatever form you can provide it, then build a performance calculator that is tailored to match yours.
High-quality performance is the foundation to create detailed and trustworthy attribution. Keeping the models straightforward and focusing on the data that is really needed reduces the analytics footprint required. Our approach is to reuse existing front office sources.
During and after the performance attribution implementation process, our specialist team works closely with you to provide advice, support and continuous improvements to ensure the system works seamlessly, incorporating your feedback and quickly fixing issues as they arise.
Core areas
- Implement Faster
- Match Performance
- Minimal Data
- True Partnership
Implement Faster
Implementation times can be shortened by reducing the amount of data required and the number of transformations of that data.
In addition, reusing data already checked and employed elsewhere in the organisation removes the need to initiate new feeds and the initial and ongoing checks that entails.
Our Solution
We undertake the transformation in the system. We have the flexibility, tools and knowledge, we have followed this process many times and we are experts at it.
Our models are designed to take front office analytics leveraging as a high quality data source with the added bonus that the front office see the results they expect.
Match Performance
Matching the ABOR performance numbers is a first requirement for users to be able to trust the attribution results.
Building checks around the individual security contributions builds on that to give trust at that level too.
Our Solution
We build a bespoke performance model to match each accounting platform. It handles the idiosyncrasies, particularly of derivatives, that each system possesses.
We build in security level consistency checks to feed back what to correct. The accounting data quality improves.
Minimal Data
Attribution is a data hungry process. But some processes are hungrier than others.
Key rate (KRD) models are often chosen in fixed income with little consideration to the mountain of analytics data that choice requires.
Even standard yield-based models will likely require new data sources.
Our Solution
Our primary fixed income attribution models use a returns-based approach. They typically have broader applicability than KRD or yield-based and at least as much detail.
In multi-asset we have created ways to attribute underlying exposures, particularly currency, without confusing the analysis.
True Partnership
It seems obvious to state but attribution, not implementation, is the desired end product.
Implementations needs flexibility to avoid stalling and models need to be manageably complex.
Even after implementation it can help to have experts on hand to aid in interpreting some of the results.
Our Solution
We work with you, making alterations where necessary to ensure successful implementation.
This assistance continues after implementation to make sure you maximise insights from the data and to provide ongoing system improvements.
Performance Attribution Implementation – Problems and Solutions
The Client Does the Heavy Lift
A typical implementation puts the onus on the client to be flexible, provide the data in the right format and transform it where necessary.
Issues
- Implementation expertise is often with the system provider
- But the work remains with the client
- Transformations introduce another potential source of error
- Ongoing maintenance can be onerous and bureaucratic
Our Solution
- Transformations happen within the system
- Our approach is flexible and transparent
- We can advise on every step in the process
Quality Requires Feedback
The more noise there is in the model, the harder checking gets. The more complexity there is, the harder it is to reflect everything correctly.
Issues
- Taking performance contributions makes error checking hard
- In fixed income, yield-based models create a residual
- In multi-asset, drilling down to 1,000’s of assets creates complexity
Our Solution
- Bespoke performance pinpoints booking errors
- Performance based model removes the residual
- Currency look-through reduces complexity
Monolithic Systems
Large scale systems aiming to do everything rarely do anything well. Making changes requires a huge upgrade process.
Issues
- Built to handle lowest common denominator
- Data centre based so difficult to change
- Upgrade relies on client so it is often skipped
Our Solution
- Many bespoke elements
- We only do attribution
- Cloud-based architecture enables minor tweaks
- We work with your data so can ensure compatibility