Cutter AdvantEdge

GIPS 2010: Are you Compliant? (September 2011)

Tue, 20 Sep 2011 00:00:00 -0600

GIPS 2010 mandated many new and rigorous requirements for GIPS compliance and, according to a recent CutterBenchmarking survey conducted in early 2011, only 20% of firms responding at the time were compliant with the new requirements. The 20% figure seems low, but given the magnitude of changes to the requirements, it was not surprising to see such a large percentage of firms still working towards compliance.

Software Strategies for the Investment Manager: Is there a right answer? (June 2011)

Thu, 30 Jun 2011 00:00:00 -0600

Investment managers have long struggled to manage the multitude of Best of Breed systems from different vendors that support their investment processes. Given the exorbitant costs of integrating, maintaining, and upgrading different systems, many firms are looking at different operating models to more efficiently manage their business.

Taming the Hydra: Managing your Vendor Relationships (May 2011)

Mon, 16 May 2011 00:00:00 -0600

Buy-side asset managers are becoming increasingly focused on finding ways to successfully manage their growing stable of third party providers and ensuring that the services and deliverables meet the asset managers’ expectations.

Balancing Act: Building a Successful Data Management Program (April 2011)

Thu, 07 Apr 2011 00:00:00 -0600

Data management programs are never born or executed in a vacuum. The successful program is seen as a means to a greater end—achieving the firm’s medium to long-term strategic objectives. The road to achieving those objectives is peppered with demands to make tactical corrections, to “add value” and to deliver incremental improvements. Ultimately, the data management program serves many masters, each with a separate agenda, and that’s as it should be.

One Step Ahead, One Step Behind: Performance Measurement and Attribution (February 2011)

Mon, 28 Feb 2011 00:00:00 -0600

It has been fascinating to follow the arc of performance measurement standards from the original publication of the AIMR PPS in the mid-1990s to the CFI Institute’s current-day GIPS. The standards have spawned entirely new businesses including verification, and entirely new systems for automating the associated processes.

Back to School: The Dodd-Frank Act (December 2010)

Thu, 16 Dec 2010 00:00:00 -0600

The Wall Street Reform and Consumer Protection Act, also known as Dodd-Frank, calls for the most dramatic change in US financial regulation since the 1930s.

Market Data: Good Data’s not Cheap (October 2010)

Fri, 01 Oct 2010 00:00:00 -0600

CutterBenchmarking recently issued a report on market data showing that it’s getting more expensive to meet demands for comprehensive, high quality, and timely market data. In fact market data cost is now second only to human resources in a typical investment firm’s IT and Operations budget.

Upgrading Your Systems: Stand Pat, Bite the Bullet, or Change Horses? (August 2010)

Sun, 01 Aug 2010 00:00:00 -0600

Because of recent economic conditions, many firms that delayed upgrades are now faced with the decision of whether the right time to upgrade is now. In this edition of the CutterAdvantEdge, we introduce you to the decision framework CutterConsulting uses to help our clients with this critical decision.

An Interview with Robert L. Goldstein of BlackRock Solutions (May 2010)

Sat, 01 May 2010 00:00:00 -0600

In June of 2009, BlackRock announced their intent to purchase Barclays Global Investors, a deal that made BlackRock the world's largest investment manager. Cutter Associates had the chance to sit down with Robert L. Goldstein, Managing Director and head of BlackRock Solutions to discuss the challenges of this mega merger and the changes it made to their IT and Operations.

CIO Perspective: The Evolution of the Technology Office (April 2010)

Tue, 20 Apr 2010 00:00:00 -0600

Cutter Associates had the chance to speak with three executive members of our research community about the evolving nature of their role as CIO and what the future holds for technology.

More With Less (November 2009)

Sun, 01 Nov 2009 00:00:00 -0600

“More with Less” is the new mission for asset managers, and it means “do more with smaller budgets, fewer people, and less risk.” The mandate is forcing firms to look at their operating environments in new ways and to examine all available options.

Time is Both Money and Risk (March 2010)

Mon, 01 Mar 2010 00:00:00 -0600

“Time is money” as the saying goes, but time is also risk. Nowhere is this more evident than in post-trade execution processing and settlement.

Get a Grip on Market Data Costs (September 2009)

Tue, 01 Sep 2009 00:00:00 -0600

For the asset management firms of the CutterResearch consortia, managing market data means dealing with two primary concerns: reducing costs and maintaining or improving quality. But is it realistic to expect both? CutterResearch uncovered some effective strategies that do improve the cost-benefit ratio, without the slash-and-burn approaches we've seen over the last twelve months.

IT Cost Management: Preparing for 2010 (July 2009)

Wed, 01 Jul 2009 00:00:00 -0600

Recession, depression, or recovery—the debate among economists continues, but there is consensus in the financial services world that in 2009, IT budgets have been squeezed across the board. Financial management firms have cut costs significantly—canceling major initiatives, reducing staff, adjusting compensation plans, and in some cases, resorting to “lights on” only cost structure.

Mergers and Acquisitions: Now What? (June 2009)

Mon, 01 Jun 2009 00:00:00 -0600

Mergers and Acquisitions strike fear into the hearts of systems and operations professionals, who anticipate longer hours, increased stress, and greater job uncertainty. Effectively integrating two or more asset managers means properly controlling time, cost, and risk through impeccable planning and execution.

Fixed Income Systems: Challenges and Opportunities (May 2009)

Fri, 01 May 2009 00:00:00 -0600

The historic market volatility and dislocations of 2008 are bleeding into 2009 and continuing to challenge financial institutions worldwide. The contagion is forcing a retrenchment in balance sheets and risk taking, and few firms have found a place to hide amid the storm. Expected to emerge from the turmoil are a reconstructed global financial architecture and a more invasive regulatory environment—though the process will take years to play out.

The Current State of Trading Technology and The Search For Liquidity: An Interview with Seth Merrin (April 2009)

Wed, 01 Apr 2009 00:00:00 -0600

Mark Bobseine, Founder and Chairman of Cutter Associates, recently had an opportunity to catch up with Seth Merrin, co-founder and CEO of Liquidnet, to hear his views on how buy-side trading is changing due to current market conditions.

The Outsourcing Option: Is the Time Right? (March 2009)

Sun, 01 Mar 2009 00:00:00 -0600

As the financial crisis intensifies, asset management firms are examining every possibility for cutting costs. With back office functions like custody and fund accounting already widely outsourced, managers are now looking at options for outsourcing the investment administration of their segregated institutional portfolios.

Riding A Tiger: When Risk Becomes Reality (January 2009)

Thu, 01 Jan 2009 00:00:00 -0600

“It was like riding a tiger, not knowing how to get off without being eaten.” So said B. Ramalinga Raju, Chairman of Satyam Computer Services Ltd., in disclosing the scam where Satyam had manipulated its financials including overstating profits, understating liabilities and creating a bogus cash balance of $1 billion.