Operations

The pressure to increase efficiency and reduce costs has gained momentum and pushed firms to reevaluate their short and long-term operational stability. Investment and Fund Operations need to be product-enablers for the business that they support, with underlying operating models that are agile and scalable. Fortunately, new technologies and automation coupled with outsourcing and shoring partnerships make it possible for clients to stay competitive - if they get it right. Let our team optimise your Investment and Fund Operations strategy, functions and supporting infrastructure to keep you one step ahead.

How we work with clients

We work with firms of all sizes, locales, and asset classes across the industry to develop right-sized Operating Models to deliver their strategic goals, balance cost and efficiency needs.

Alpha's support spans Asset Managers, Wealth Managers, Asset Owners, and Asset Servicers across the lifecycle of Investment and Fund Operations Transformation:

Strategy & Target Operating Model Design – we can help assess whether your current state Invesment & Fund Operations are able to support your strategy.

Benchmarking – we can help you understand if your costs are in line with your peers, whilst also enabling Operational resourcing comparison against industry peers.

Evaluation & Selection – if you’re considering outsourcing within your Investment and Fund Operations, we have a proprietary database of over 1000 questions to accelerate assessment of potential vendors/service providers. We have also worked with all major vendors within the Operations ecosystem and have a deep understanding of their capabilities to support targeted assessments.

Implementation – whether you’re outsourcing to a technology vendor or service provider for the first time or the fifth, transformation of Investment and/or Fund Operations functions can be lengthy and difficult. We’ve transitioned over $500trn of AUM to new operating models and understand the pain points to look out for.

We understand no organisation is the same – and we consider the current state and strategic vision of your organisation to recommend the most suitable solution(s) and target state operating model. This could include:

  • Optimisation of the existing operating model
  • Outsourcing to a service provider
  • Automation or outsourcing to a technology vendor

 

Why Alpha?

Our specialist knowledge of the Asset Management sector, combined with our experience of transitioning over $500trn of assets and our in-depth knowledge of the capabilities of service providers and vendors means we are well positioned to support you when considering transformation of your Investment and Fund Operations functions. Our realistic and pragmatic approach to transformation will best enable your business to meet your strategic vision.

Q&A with Joe Docker, Global Head of Operations

How is the industry responding to downward fee pressure?

Many firms are looking to build strategic partnerships to benefit from economies of scale rather than utilising a multi-provider model. In response, Asset Servicers have looked to standardize their offerings to achieve efficiencies and to expand existing footprints with clients.

How can I adapt my operations to better service their clients?

Investment Manager models are continuing to diverge, as they either build scale through acquisitions or specialize their investment propositions in search of better returns. Firms are seeking solutions that allow seamless investment across both private and public markets. There is growing investment by Asset Servicers into alternatives and complex derivatives to meet demand for the servicing of increasingly complex asset classes. Operationally, however, these two asset classes have faced challenges with integration.

What roles does outsourcing play for today's Asset Managers?

Asset Managers are seeking opportunities to increase their scope of outsourcing to focus on the core value proposition of managing investments. Some are considering outsourcing elements of their Front Office (Order Management, Trading, OCIO, Change Management, Reporting) as a differentiator and seeking new services from their Asset Servicers.

Outsourcing’s benefits are becoming multi-dimensional as traditional services are becoming more commoditised; such value-add services bring enhanced capability rather than solely cost reduction.

How are firms incorporating AI and automation into their operating models?

Strategies for firm-wide automation and digitization continue to mature, with a focus on creating the right platforms and operating models around this. Managers continue to invest in research and execution automation to augment the investment process. As services such as reconciliations are automated, Managers expect service costs and efficiencies to be passed on.

How is the role of data evolving within Investment and Fund Operations?

Managers must consolidate proprietary and market data from multiple sources and asset classes into the investment process. Increased investment into new technologies such as alternative datasets, NLP, ML, AI will continue to evolve. Asset Servicers are delving into data visualization and analytics, providing real insight into investment decisions.

Is location still a lever for me?

Location strategy is becoming a key industry focus; those who weren’t in the first wave are revisiting as cost pressures mount and those with mature shoring solutions are redesigning their solutions. Technology advances are undercutting the original business case for offshoring, and therefore, needs to be considered together, thereby delivering operational efficiency and transformation the business.