Qualities of the best asset servicing firms

Today’s market is marked by turbulence – a result of various geopolitical developments that are set to create profound impacts on economies around the world. In this kind of uncertain atmosphere, a demand for asset servicing firms arose among players in the securities and investment industry. These days, in fact, they have become indispensable outsourcing partners to asset management companies.

Below are the qualities to look for when selecting an asset servicing company to work with:

Equipped with first-rate innovations. Much of the work in asset servicing should be supported by innovative solutions that facilitate automation, collaboration, and integration – features that in turn promote efficiency of operations. The best outsourcing partners have proprietary, leading-edge solutions that may be tailored to their clients’ specific needs, enabling speedy delivery of information, and creating a company culture based on quick and evidence-based decision-making. From portfolio management systems, to accounting software and communications platforms, such tools are a necessary component of a well-performing fund management operation.

Adept at data management and reporting. In asset management, there is a huge amount of data to be assessed to guide future investment decisions. An outsourcing partner should have the staff and tools for gathering data, including news, trends, and records for all transactions; warehousing; and preparing the needed reports for submission to regulatory authorities. Its personnel and technologies should be capable of conducting sound analysis involving a comprehensive set of information, culling the essentials while also discerning important patterns that emerge across entire volumes. Third party firms possessing secure cloud-based platforms for data safekeeping with maximum guaranteed uptime, and features for aggregating data from various locations into a single view, are ideal partners.

Keen on promoting cost-efficiency. A primary motivation for many asset managers in tapping asset servicing firms is the great potential for cost savings. In an intensely competitive business climate, it pays to have lean operations, and enlisting an outsourcing partner typically means cost reduction. The candidate partner should be aware of this criterion, offering scalable solutions that respond to the client’s state of infrastructure, and also promoting true complementarity of staff and resources. Procedures should be developed specifically to address loopholes in the client’s present operations, eliminating redundancies, and drastically reducing human error for repetitive functions such as calculations and compliance management.

By adhering to these criteria when screening possible outsourcing partners, today’s asset management firms can truly benefit from what asset services can offer.