Automating investment performance measurement systems

Crunching the numbers to keep track your investment’s health and performance manually is a painstaking process that needs checking and rechecking. On the other hand, running the numbers through a investment performance measurement system gives accurate output at a fracture of a time, eliminating the lag period between performance evaluation, analysis, and documentation.

Investment performance measurement has to be a comprehensive tool to evaluate performance and attribution — figures that could alter the succeeding decisions. But it does not stop there. Analysis also includes what the progress drivers are and what hinders int investment’s growth and expansion. Primarily, at the decision-making level, investment performance measurements are utilized to maximize revenues and benefits while reducing, if not eliminating, risks. Benchmarks and threshold figures are also analyzed and updated as client’s goals and preferences change.

Data analysis and investment performance measurement are utilized to reduce operational risk and is especially effective under automated systems because one database is available for all concerned parties. Client profile, risk tolerance, mandates, or investment preferences  are uniform across all departments, updates and revisions are easily synchronized as well.

Furthermore, automated investment performance measurement systems improves reports since all critical numbers and figures can be retrieve easily. It promotes efficiency as it gives performance analysts more time to go through the returns.

Rising costs can easily be accounted for investment performance measurement systems that are fully automated. New strategies or mandate can be easily added or updated. Cleaning, calculating, aggregating, and verifying data — the usual time consumers — no longer have to be manual: less risk, better investment decisions.