Strategic Efficiency: Enhancing Asset Management through Outsourcing Services

Investment management services are critical to the successful management of any investment portfolio. From asset allocation to risk management and performance evaluation, these services are necessary to ensure optimal returns on investments. However, managing these services in-house can be time-consuming, expensive, and prone to errors. Outsourcing part of your asset management services is an effective way to reduce costs, increase efficiency, and improve overall performance.

Asset Management Services With Automation and BI

Asset management services are a subset of asset management solutions that provide specific services to investors. They are typically provided by investment management firms that specialize in managing specific types of assets, such as equities, bonds, real estate, or alternative assets. 

Investment management services require significant back-office operations to support the functions that drive investment decisions. As the industry continues to become more complex and the regulatory environment evolves, asset managers, especially at VC/PE-backed companies, are required to provide increasing levels of detail, accuracy, and speed to meet the expectations of investors and regulators alike. One way to enhance the efficiency of an asset management service is through the use of custom AI-powered Automation and Business Intelligence (BI) tools. Here are major asset management services that are effectively controlled by Automation and BI.

Middle-Office Services

• Cash and Collateral Management: Automated cash management solutions monitor account balances, forecast cash flows, and manage payments more efficiently. Additionally, collateral management systems help asset managers track and monitor margin requirements and collateral assets to ensure compliance with regulatory requirements.
• P&L Reporting: Automated P&L reporting tools help asset managers track performance across multiple portfolios, asset classes, and markets, providing a comprehensive view of the firm’s overall performance.
• Static & Market Data: Data management tools help asset managers track changes in market data and ensure that portfolio valuations are accurate and up-to-date.
• Risk Management: Automated risk management tools help asset managers monitor market risk, credit risk, liquidity risk, and operational risk, ensuring that the firm’s risk exposure is managed effectively.
• Regulatory Compliance: Compliance tools help asset managers monitor regulatory requirements and ensure that the firm’s compliance policies and procedures are up-to-date and effective.

Back-Office Services

• Asset Servicing: Asset servicing includes a wide range of functions, such as trade settlement, corporate action processing, income collection, and tax reporting. Back-office Automation tools help asset managers manage asset servicing more efficiently by automating many of the manual processes involved in managing investment portfolios, reducing the potential for errors and delays.
• Fund Accounting and Administration: Automated fund administration tools help asset managers manage investor reporting, fund transfers, and other administrative functions more effectively.
• Investor Services: Automated investor services tools help asset managers manage investor reporting, account maintenance, and other investor services more efficiently.
• NAV Reporting: Net Asset Value (NAV) reporting tools help asset managers track performance across multiple portfolios, asset classes, and markets, providing a comprehensive view of the firm’s overall performance.
• Trading and Settlements Support: Automated trading and settlement tools help asset managers manage trade capture, confirmation, and settlement processes more efficiently, ensuring that trades are settled accurately and on time.
• Technology & Engineering: Technology and engineering tools help asset managers manage infrastructure, software applications, and other critical technology functions more efficiently.
• Accounting: Automated accounting tools help asset managers manage financial reporting, account reconciliations, and other accounting functions more efficiently.
• Legal: Automation in legal tools helps asset managers manage legal reporting, legal compliance, and other legal functions more efficiently.

Benefits of Outsourcing Asset Management Services

1. Cost Savings

Outsourcing asset management services can save costs by reducing the need to hire in-house teams and investing in technology and infrastructure. Outsourcing firms can provide services at a lower cost due to economies of scale, allowing investors to save up to 70% on operational costs.

2. Efficiency 

Outsourcing the services also helps investors improve their efficiency by providing access to the latest technology, automation tools, and skilled professionals. Outsourcing firms can provide more comprehensive services, such as reporting and analysis, and enable investors to focus on their core business functions.

3. Expertise

Outsourcing to an experienced provider provides investors with access to expert talent with relevant knowledge and skills. Outsourcing firms typically employ professionals with in-depth knowledge of various asset classes, markets, and investment strategies.

4. Risk Management

Outsourcing asset management services help investors manage their risks better by providing access to sophisticated risk management tools and techniques. A reliable asset management provider can provide regular risk assessments, identify potential risks, and help investors develop strategies to mitigate those risks.

Infinit-O is the trusted customer-centric and sustainable leader in Business Process Optimization to Small and Medium businesses in the Financial Services, Healthcare and Technology sectors by delivering continuous improvement through technology, data and people.

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