Investment fund managers around the world are looking to improve how data is managed by front- and middle-offices, given there is now a shift towards the use of machine and data analysis for the assessment of a portfolio's performance.
Jervis Smith, country managing director of Vistra Luxembourg, recently talked to European private equity media Unquote
"Margins in asset management have traditionally been higher; therefore, the industry experienced less cost pressure compared with banks or insurance companies. Their main focus was the performance of funds rather than making their own operations more efficient."
"However, in the past few years, fund administrators around the globe have taken a different position: performance might be transitory, so services need to be constantly good and cost-efficient."
As a result, fund administrators are stepping up in terms of tech offering by providing clients with web-based front-end tools to access data, help model "what if" scenarios, as well as allowing faster reporting.
For example, Vistra has developed a digital portal and system, which enable portfolio managers to have a holistic view of their fund performance and provide global oversight of fund operations, enhancing efficiency and client experience. Greater transparency also allows clients to make more informed decisions.
The article also cited Vistra's latest Private Equity Fund Governance Report 2019, which reveals that technology upgrading is a high priority for the private equity community across the board, based on the responses provided by limited partners (LPs), general partners (GPs) and intermediaries across Asia, Europe and the US.
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