Author: Priyesh Mistry, Liqueo Senior Consultant
In recent years, we’ve seen several key mergers in the Asset Management technology industry. This has moved the industry closer to the long-desired utopia of seamless Front-to-Back Office integration provided through one service provider.
This aim has been aided by the increasingly prevalent belief that Asset Management firms should let technology experts worry about providing and running an efficient Front-to-Back Office system, leaving Asset Managers to focus on creating Alpha. Meanwhile, advances in technology (cloud, datamarts etc.) have made it ever more achievable.
Here are some tips for an Asset Management organisation when moving to an integrated Front-to-Back Office service:
The Front Office system should no longer be viewed by the Asset Manager as a tool kit that is run by the internal technology experts. It is now a full service where the implementation project should be driven by the vendor, working with the Asset Manager to implement, and even enforce, standardisation of workflows where possible. This spans from portfolio modelling through to reporting. A key long-term aim is to redeploy the technology support team to other areas, thereby reducing cost and adding more value to the money-earning Front Office.
A good project team structure must have:
It goes without saying that all three team members should work interdependently.
A new operating model needs to be designed around the matrix of static data.
The start-of-day data loads may need to change, in order of being processed and how they are interdependent. Use of an IBOR (Investment Book of Record) makes this task easier but detailed consideration must still be given to any new data sources. Consider how they are integrated into the system and their effect on positions, orders and end reporting.
Despite its importance, testing is often a bit of an afterthought, due to focus on firefighting issues to achieve an accurate configuration.
The structure and length of the different types of testing should be run by a dedicated team, who are not only able to test for Day-One but can also prepare the Asset Manager to run future (user) tests with minimal effort and disruption. Automated testing, testing packs, user education and access to maintained test environments are essential on this journey. This must also be balanced with providing an up-to-date test environment for the majority of users, whilst the performance teams will want historical data to take centre stage.
Liqueo are at the forefront of implementing these changes. We work alongside the technology vendor as well as the Asset Manager to assist in achieving the new operating model. And this work is not just done from a conceptual perspective. It comes from “hands-on” experience working with Fund Managers, Dealers, Compliance, Client Services, Data Teams, Technology Teams, Middle Office and Back Office.
Here at Liqueo, we provide organisations with the skills to implement programmes successfully through our flexible workforce model, tailoring solutions for our clients’ strategic goals. We deliver an exceptional, bespoke service to every client via a dynamic and agile framework. If you are interested in how we can help you implement successful programmes or want more information about tips for a successful front to back office implementation, contact us.
We use necessary cookies to make our site work. We'd also like to set analytics cookies that help us make improvements by measuring how you use the site. These will be set only if you accept.
For more detailed information about the cookies we use, see our Cookies page.
Necessary cookies enable core functionality such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.