Performance Attribution: Future Trends
Performance attribution vendors are expected to make a slew of upgrades this year "to open system platforms, decrease processing time and create a flexible environment for asset managers to customize or modify attribution models," says a recent Celent Communications report. Among the future trends identified are:
- Flexible attribution solutions are in demand. Asset managers will select solutions that are flexible enough to compute attribution for multiple investment approaches and asset classes to produce reports varying in sophistication. Customization is necessary to satisfy these demands and to address regulatory issues and competitive service standards.
- Portfolio-management systems are moving into this space. Portfolio-management vendors, which have loyal client bases, are expected to take advantage of the performance attribution specialists' shortcomings.
- Processing speed. Institutions will respond most favorably to vendors that are able to prove the processing speed of their solutions.
The report, "Specialist Vendors of Investment Performance Attribution," also discusses other key trends.