[ THOUGHT LEADERSHIP | NORTHERN TRUST ]
Fully comprehensive solutions at every point in the lifecycle of an investment decision - from decision support and analysis to operational support , reporting and transparency to investors , are available from outsourced solutions providers .
The benefits seem obvious . A laser-like focus could improve investment returns and operational efficiency . Solutions providers can bring global scale , reach and resources to the table . As an example , managers will be well-positioned to permanently change the shape of their tech stack and may be able to arrest the ever-increasing cost of embedded data and technology solutions by relying on outsourcing .
Investment managers can enjoy the benefits of sensible time-andresource saving propositions from front through middle to back office . Reviewing how trading is delivered may help deliver returns on change projects more quickly . Continuing through the rest of the value chain and plugging into live solutions from global-scale providers enables managers to develop more flexible models to service their own clients .
Front-office , trade execution and foreign exchange solutions are readily available to managers . Similarly , investment operations , portfolio servicing ( performance measurement , attribution , risk , and regulatory reporting ), fund servicing , and data management can be delivered on a modular basis into the middle office . Finally , the back-office can be supported too . Trustee and depositary service , custody , fund administration and transfer agency solutions are all tried , tested and ready to support
managers .
Investment managers are natural problem solvers . Given the challenges highlighted in the recent surveys , those skills can be applied to the key questions – does this function or activity add to our ability to drive an investment return and earn a fee ? Is it more cost-effective to do it ourselves ? If the answer to those is anything other than a positive ‘ yes ’, managers should work out how to rent the outcome they seek from solutions providers .
In short , be like the world ’ s fastest drivers and sailors . Take steps to orchestrate your whole ecosystem around the highest possible performance outcome . If your aim is to deliver excellence , tune the vehicle to its optimal shape and configuration and deliver everything else from the pit lane or the support boats .
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