According to a recent article in FundFire, there is much greater scrutiny on investment operations during the RFP process with the modus operandi being that failing to scrutinize a manager’s operational capabilities can hinder investors down the road should a problem occur.
That is where technology can be the differentiator. More often than not, investment management firms have systems that are silo-based and only focus on back or front office but not both. These systems ignore the interactions between the departments of the investment manager resulting in a gap in the audit trail as it relates to the investment process.
By investing in systems that offer a holistic view, investment managers will not only address the potential for not being selected within an RFP because of an operational issue, they will also increase their operational efficiency, reduce costs and mitigate risk.
