Upgrade Portfolio Management by Managing Multi-source Data

Joel Kornblum, Managing Director, Regional Sales Director


Do you have a variety of front-office users with different business needs? Do you struggle to support those needs because you are managing multiple sources of data? The process by which your portfolios are reported is often as diverse as the end-users of this information and likely includes data fed from a myriad of vendors. There is no best single source for all your investment data and many portfolio managers are hindered by system limitations due to how data is structured and stored.

Most legacy portfolio management systems can only manage and store a single source of data, which significantly limits a firm’s ability to interact with the information available. Data cannot be easily organized and systems often revert to highly structured “class schemes” for reporting. These rigid and inflexible hierarchies limit the user’s ability to generate reporting or performance measurement groupings the way users want. Because end users want to report data in ways that don’t correspond to structured hierarchies, they often end up exporting data to excel or into their own databases and supplementing it with additional data. If a firm lacks the ability to manage, load and store multiple data attributes across sources, they are limited to these manual workarounds that are a significant drain on resources.

The concept of multi-source data management involves taking all of a firm’s data, validating and storing it by time, source and type. None of the data is discarded and once this information is stored, users can generate highly flexible attribute-based reports. This provides portfolio managers with data that is fit-for-purpose and provides virtually an unlimited ability to generate highly flexible report groupings. In addition, because multiple sources are stored, reports can have a source hierarchy of data for reporting purposes. The ability to load, manage and store multi-source data yields richer reports for end users and streamlines back and middle office operations. This approach obviates the need for costly workarounds such as exporting data to spreadsheets where the integrity of the data can be questioned. In our experience, multi-source data management improves firm-wide efficiency.

Are you always exporting data to spreadsheets or external databases to achieve your reporting goals? Are there reports that you are still generating manually? We’d love to hear your feedback on data and reporting in the comments section.

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