Spotlight on Engage: Building a performance measurement solution for the future

Marc Rubenfeld, CIPM, Head of Eagle Solutions EMEA/APAC


engage2015What is your market going to look like in 2020?

 

Understanding how your market is evolving should provide the starting point for any evaluation or review of your technology. Unlike Steven Spielberg’s 1989 classic film, Back To the Future Part II, which took Marty McFly to a futuristic 2015, it doesn’t require a time-travelling DeLorean or such a flight of fancy.

2020 is only five years away and the patterns that are shaping how the market is developing are already manifesting themselves. Acknowledging these changing demands and evaluating your preparedness for this future against those is key to keeping business objectives and your client-base at the forefront of any new software implementation.

At Engage I’m going to be joined on-stage by Naresh Subramaniam, head of investment services at Melbourne-based National Australia Bank (NAB), which went through exactly this process when selecting a new performance measurement platform to build the next generation of their offering on. They knew that their in-house performance measurement tool was struggling to keep up with the demands placed on it, but to ensure their new solution would have the capabilities to meet their future requirements they knew they needed to start by looking at their changing marketplace.

The specific emerging trends they identified included:

  1. A growing middle class that is saving for retirement and accumulating wealth.
  2. Alternative investments, such as hedge funds, private equity and real estate and passive investments, such as ETFs, look set to account for a greater share of these assets and become a more significant component of portfolios.
  3. A shift in portfolio allocations away from accumulation investments towards more fixed-income and income-generating assets as a greater proportion of the population enters the retirement phase.  This is likely to lead to an increase in new products and solutions tailored specifically to meet this demand.
  4. Increasing investment transparency with access to portfolio level data becoming the norm and institutional investors increasingly using that to manage risk levels and for regulatory reporting.
  5. Technology will continue to enable us to do more, at any time, from anywhere.

Armed with these insights, NAB was able to identify, with a high degree of precision, what it needed from its next generation performance provider and ultimately selected Eagle as a vendor for a number of reasons:

  • First and foremost, they recognized the need to invest in their data management and new technology.  Their existing systems were already handling transaction volumes they were never designed for and they needed to increase their capacity.
  • They wanted to ensure that their provider had the same focus on the future as they did and was investing in the best technology and that would be able to scale with their business as it grew.
  • With the growth in alternative asset classes and the anticipated shift in portfolio allocations, it was essential for NAB to have a system that could handle both mutual funds and mandates, that had fixed interest analytics and attribution capabilities, including the ability to manage risk plus a full suite of return methodologies to handle alternative investments such as internal rate of return (IRR).
  • In addition, they would also need a solution that would help meet the regulatory and reporting requirements of their clients and provide access to a granular level of detail with look through capability and sophisticated risk analysis tools.

Please join me at Engage 2015 to learn more about how the market is changing and how you can best leverage your investment in Eagle to prepare you for the future in what – I can confidently predict – will be an entertaining and engaging session.

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