Embracing diversification with confidence
How to get where you want to be: A fund manager’s journey
It’s in your sights: a future where your operations are flexible enough that you can make the best possible decisions for your business at the right moment in time; where you have the freedom to adapt to ever-changing markets, move quickly across diverse asset classes and markets to capitalise on opportunities and grow your business, all while delivering exceptional client service.
The time to start planning for that successful future is today.
Where you are now
Pushing beyond your limits
You’re leading a team of skilled and experienced personnel. You’re ambitious, and you need to be: you’re operating in a highly competitive, crowded marketplace. Your legal, compliance, operational and technological tools and expertise are adequate – for right now. But would they cope if you were to branch out into new asset classes and markets?
Where you want to be
Exceeding current expectations
You know that the key to success is showing clear points of differentiation, to be unsubstitutable. Your diversification journey should be taken confidently and inspire that same confidence in your investors as you deliver comfort and real value, and pivot quickly to exploit transient opportunities.
Where you don’t want to be
While diversification brings many benefits, if you forge ahead without the right planning and infrastructure, you risk losing the confidence of your investors – in all your products. You may end up drifting away from the core capabilities that convinced investors in the first place. And you may create internal tensions if others in your team are keen to implement short-term solutions before you’ve made the necessary workflow adaptations.
Where your mindset needs to be
The diversification journey starts with a clear, strategic plan that extends beyond investment strategy to encompass support infrastructure, robust governance and oversight capabilities. Success flows from designing the right mix of in-house personnel, systems automation and operational outsourcing, and may require bringing in and seeding teams with demonstrable expertise as required.
Where your strategy needs to be
Defying markets’ challenges
As more money has flowed into the sector, traditional trades have become increasingly crowded. Diversification opens up a new realm of possibilities. Shifting into more diverse, often esoteric asset classes and markets offers opportunities to enhance returns – and demonstrate real value – to today’s more sophisticated investors.
Where your systems need to be
Infrastructure is crucial. When transitioning into new asset classes or markets, systems need to be extensible with built-in flexibility around data attributes; meanwhile, cloud-delivered solutions allow for rapid deployment and outsourcing can be used to remove some operational headaches. Comprehensive instrument coverage, full transparency, reporting and control capabilities need to be baked into infrastructure across the funds or managed accounts.
Finding capabilities you can trust
New capabilities will help you push through traditional investment strategy limits. Geneva by SS&C Advent is a fully transparent diversification control centre that supports the full spectrum of your business and all phases of the diversification process, from planning and strategy to operations, risk, compliance and review.