Cutter Press Releases

Cutter Associates Hires Robert Schnibbe, Jr. as COO (March 2012)

Fri, 30 Mar 2012 00:00:00 -0500

Boston, London – Cutter Associates, a research, consulting, and benchmarking firm supporting the investment management industry, today announced that Robert Schnibbe, Jr. has joined the company as Chief Operating Officer. Mr. Schnibbe will provide day-to-day operational leadership to the firm, including managing the firm’s sales function and product areas.

“Hiring Bob as COO is an important development for us. Great opportunities are opening up for the company and Bob is perfectly qualified to help drive growth and innovation,” said Mark Bobseine, Chairman of Cutter Associates. “And now we have the capacity to focus more keenly on new initiatives.”

Mr. Schnibbe brings with him a broad range of experience in the financial services sector, including experience in asset servicing, asset management, and commercial banking. He founded several start-up companies and has served as CEO, COO, Senior Vice President of Operations, and corporate director for a number of companies. He has also served in senior technology and operation roles at major financial institutions including JP Morgan Chase and M&T Bank.

Most recently, Mr. Schnibbe worked for State Street Bank’s Asset Servicing business, where he managed Strategic Planning and later served as Program Executive in their asset management outsourcing business.

“I’m delighted to be part of such a highly skilled and talented team with a unique presence and a strong reputation in the investment management industry, and I look forward to building on Cutter’s strong foundation and assist in a meaningful way in maximizing the company’s potential and value,” said Mr. Schnibbe.

The company feels that with Mr. Schnibbe on board as a core member of the Cutter management team, his skills and experience will drive innovation and help the company move to the next level.

Cutter Associates works exclusively with investment management firms and is widely recognized for truly independent investment process expertise. Through three interrelated services, they have compiled the industry's largest knowledgebase: CutterResearch offers member firms detailed research to help reduce risk, lower cost and to keep them informed and up to date on systems and operations. CutterBenchmarking provides bespoke reports evaluating firms' investment processes by capabilities, risk and effectiveness through surveys based on tried and tested capability models. CutterConsulting has undertaken over 400 projects to evaluate, select, or implement systems and to develop technology and operational strategies for investment managers.

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CutterBenchmarking™ Launches Cutter Associates Capability Models™ (February 2012)

Wed, 22 Feb 2012 00:00:00 -0500

This week, Cutter Associates - a research, consulting and benchmarking firm supporting the investment management industry – successfully completed the launch of their benchmarking service based on capability models, with the publication of The Data Management Capability Report.

The detailed report reflects the actual operational status of 41 participating firms, each measured against a vetted and proven capability model which demonstrates exactly where they stand in relation to their peers and best practice. It identifies areas for process improvement, supports cost and risk reduction activities, and helps facilitate more targeted and effective decisions around optimizing operational performance.

CutterBenchmarking now undertakes a highly customized executive-level study for member firms and produces truly individual and member-centered reports. “Our approach is clear and direct and creates a common understanding of a specific business area’s operational and technological complexities” says Eryn Kelley, Director of CutterBenchmarking.

The Cutter Associates Capability Models™ have been developed for all major operational and IT functions critical to investment management firms and measure key factors that determine capability levels, ranging from reactive to optimized. These models are created in close partnership with the extensive member community and by harnessing the expertise of Cutter Associates’ three interrelated services - CutterResearch™, CutterBenchmarking™ and CutterConsulting™. The wealth of knowledge derived from these services is the largest in the industry and provides unparalleled insight and market knowledge.

By using the custom analysis and detailed recommendations in The Data Management Capability Report, firms can build on their strengths and engage stakeholders to implement strategies that deliver results, improve profitability, increase efficiency and enhance investment processing.

“The amount of work that goes into creating a report for a firm, is substantial but clients have been very appreciative - hard facts are among the great drivers of success”, said Eryn Kelley.

Cutter Associates Welcomes its 200th Research Member (February 2012)

Tue, 07 Feb 2012 00:00:00 -0500

Cutter Associates, a research, consulting, and benchmarking firm supporting the investment management industry, today announced that a large financial institution has signed as its 200^th CutterResearch member.

Over 5,000 industry professionals from 200 member firms make up this research community and they increasingly rely on it to keep them updated on investment processing developments in both IT and operations. Members interact through about 30 events a year – sharing ideas, networking and collaborating on possible solutions to common challenges.

“We are very pleased with the continued expansion of our research organizations,” says Mark Bobseine, Founder and Chairman of Cutter Associates. “With the global economy on such shaky ground, firms are now focused on containing or reducing costs and mitigating risk - this is where CutterResearch has really proved its worth. Members tell us they value the extent of the member network and the depth and breadth of our research, which helps them make educated decisions about systems and processes that are constantly progressing and evolving.”

New research topics are identified and developed together with CutterResearch members. For the first half of 2012, data management, alternative investments, operating efficiencies and new technologies are top priorities.

“Companies are currently looking for strategies on how to implement social media into their business platforms. Our research experts have investigated industry trends to find out how managing this environment can benefit asset management businesses,” said Mr. Bobseine. “These days, firms need to operate more efficiently and have the best possible tools in place to be and stay competitive. We aim to continually deliver the key information that will help our members achieve exactly that.”

About Cutter Associates: Cutter Associates (www.cutterassociates.com) works exclusively with investment management firms and is widely recognized for truly independent investment process expertise. Through three interrelated services, they have compiled the industry’s largest knowledgebase:

CutterResearch offers member firms detailed research to help reduce risk, lower cost and to keep them informed and up to date on systems and operations.

CutterBenchmarking provides bespoke reports evaluating firms’ investment processes by capabilities, risk and effectiveness through surveys based on tried and tested capability models.

CutterConsulting has undertaken over 400 projects to evaluate, select, or implement systems and to develop technology and operational strategies for investment managers.

Technology Alliance™ Members Discuss Business Intelligence, Order Management Systems, and Performance Practices (September 2011)

Fri, 30 Sep 2011 00:00:00 -0500

September 30, 2011 - Boston, London – Cutter Associates, a research, consulting, and benchmarking firm supporting the investment management industry, today announced that more than 100 members, representing 58 investment management firms, participated in the Technology Alliance™ meeting held September 26th and 27th in Boston. CutterResearch provides over 200 investment management firms with independent, up-to-date research, including in-depth vendor evaluations and recommendations.

Research presentations over the two day event included Business Intelligence Tools and Practices, Performance Measurement and Attribution Practices, Best of Breed vs All-In-One, and Order Management Systems. Highlights of the most recent CutterBenchmarking study on Managing Third Party Services and an update on Global Investment Performance Standards (GIPS) were also featured. Opportunities for members to network and interact were provided by a roundtable member discussion on Provider Strategies: From Selection to Management and by a member panel discussion on Order Management Systems.

The event opened with a keynote address on Trends in Enterprise Analytics by Christian Chabot, CEO and Founder of Tableau software. The second day of the meeting opened with Mark Bobseine, Cutter Associates Chairman, sharing some industry insights. His presentation featured on-site polling results providing insight into topics at the forefront of investment managers’ minds, including costs, ROI, and stressors. On-site poll results also provided insight into OMS systems and GIPS compliance, and revealed that the top three issues keeping investment managers awake at night are data management, risk management, and staffing.

Mary Storrs, Principal and head of CutterResearch, notes that “The meeting was filled with members swapping insights and actively discussing the topics presented. A session of note was our OMS panel where panelists discussed their experiences with specific OMS systems. Sessions like this support our continuous work with our members to ensure that we deliver compelling content and events that support peer networking and knowledge sharing.”

Business Intelligence, Order Management Systems and Performance Practices Top Agenda at September Technology Alliance Meeting (September 2011)

Tue, 06 Sep 2011 00:00:00 -0500

September 6, 2011 - Boston, London – Cutter Associates, a research, consulting, and benchmarking firm supporting the investment management industry, today announced topics to be presented at the upcoming Technology Alliance meeting September 26th and 27th in Boston. The Technology Alliance provides more than 80 mid-sized North American investment management firms with independent, up-to-date research, including in-depth vendor evaluations and recommendations.

Topics for September's meeting include: Business Intelligence Tools and Practices, Order Management Systems, Performance Measurement and Attribution Practices and Best of Breed vs. All-in-One: Living with the Decision. The topics address some of the challenges currently being faced by the investment management community and include updated assessments of practices and available systems.

Mary Storrs, Principal and head of CutterResearch, notes that “Registration for our upcoming Technology Alliance Meeting has been growing earlier than for previous meetings. Our fall topics have touched hot buttons with our membership, so we're looking forward to a very vibrant and engaging meeting this month.”

Mary Storrs Appointed Director of CutterResearch (June 2011)

Tue, 07 Jun 2011 00:00:00 -0500

June 7, 2011 - Boston, London – Boston, London – Cutter Associates, a research, consulting, and benchmarking firm supporting the investment management industry, today announced that Mary Storrs has been appointed a Principal of the firm and Director of CutterResearch.

Mary has been with Cutter Associates for over 12 years, first as a consultant focusing on front office projects and then with CutterResearch since inception. She has more than 25 years of experience in the investment management industry and is an expert in front office areas including trading, portfolio management, transaction cost analysis, and investment research management. Before joining Cutter Associates, she ran support and implementations for the Longview order management system. She began her career in portfolio management at a large trust bank.

Nearly 200 member firms and 4,500 industry professionals rely on CutterResearch to reduce risk, lower cost, and stay up to date on systems and operations. Mary is supported in CutterResearch by 10 highly experienced individuals in the US and the UK, and most have been with Cutter Associates for five years or more.

Mark Bobseine, Cutter Associates Chairman, states that “The appointment of Mary Storrs as Principal and head of CutterResearch is a reflection of her deep knowledge and experience in the industry. Time and again she has proven herself in the quality of research she has authored, and we are excited about the energy she brings to the leadership of the group.”

Mary comments, “I look forward to working with our member community and continuing to deliver the very best research in investment systems and operations. I am firmly committed to maintaining the quality of the current product and innovating to address the changing needs of the investment management community.”

Workflow Management, Valuation Systems and Services, Data Management Strategies and the Business of IT feature at Spring Technology Alliance ™ Meeting (March 2011)

Wed, 30 Mar 2011 00:00:00 -0500

March 30, 2010 – Boston, London – Cutter Associates, a research, consulting, and benchmarking firm supporting the investment management industry, today announced that over 110 members representing more than 60 investment management firms participated in the March Technology Alliance™ meeting in Boston. The Technology Alliance provides 82 mid-sized North American investment management firms with independent, up-to-date research, including in-depth vendor evaluations and recommendations.

CutterResearch™ presentations covered workflow management, valuation systems and services, data management strategies, and the business of IT. Member discussion panels explored valuations and the business of IT, with designated member presentations on workflow management and data management. Members also learned the results of a recent survey on pricing and valuation, published and presented by CutterBenchmarking™.

Mark Bobseine, Chairman, Cutter Associates, delivered a presentation providing insight into current trends in asset management technology and operations. The presentation included results from an on-site poll of attendees on how they expect their spending on operations and IT to change in 2011 compared to 2010. The poll results revealed that 36% of responding member firms expect operations costs to increase by more than 10% in 2011 as compared to 2010. In comparison, 48% of members surveyed thought that IT costs are expected to increase by more than 10%, with 8% seeing a decrease from last year. A representative of one member firm also presented an engaging perspective on technology trends likely to impact the business of member firms.

Gina McCafferty, Principal and head of CutterResearch, noted the results of the on-site poll revealed that most members expect increases in operations and IT costs for 2011. “Our members are clearly aware that they need to continue focusing on managing costs and improving operational efficiency,” she said. “But they also need to continue delivering value to their internal and external customers, so efficiency is the key. They’re looking at our research on workflow management to learn about new approaches and tools that can help them streamline operations.” McCafferty also mentioned the membership’s ongoing focus on data. “Data is the DNA of the investment decision making process, which is why our membership so frequently requests research on different aspects of data,” she said. “Our recent research into data management strategies confirms that firms are still interested in all aspects of data management, with the current focus on learning how to support more formal data management strategies with appropriate technology, architecture, governance, and organizational structures.” McCafferty added that when member firms look into the future, “they see new challenges coming their way with the onset of unstructured data, and continuing challenges supporting greater demands from both clients and new regulations.”

Derivatives Valuation and Workflow Management Frame Discussion at Cutter Associates Technology Council Meetings (November 2010)

Tue, 23 Nov 2010 00:00:00 -0500

November 23, 2010 – Boston, London – Cutter Associates, a research, consulting, and benchmarking firm supporting the investment management industry, today announced that over 140 members representing 48 global investment management firms participated in the November Technology Council™ and Technology Forum™ meetings in London and New York. The Technology Council and Forum meet bi-annually to hear independent, up-to-date research on investment management systems, including in-depth vendor evaluations and recommendations.

In New York, the event included an overview of the Dodd-Frank Act and its business implications in the investment management space. The presentation highlighted the structural reforms, stricter limitations, and changes to derivatives regulations and reporting requirements specific to fund managers. In London, insight into technology and consulting trends seen in investment management were shared.

At both meetings, new research was presented on Workflow Management and Valuation Systems and Services. Complementing the presentations were dynamic discussions on member firm’s related practices. Additional sessions included an industry perspective on challenges in OTC derivatives valuations and member practices around valuation systems and services.

Gina McCafferty, Principal and head of CutterResearch, commented “Regulatory reform is introducing groundbreaking changes in investment management processes. One of our topics, Valuation Systems and Services, addresses a number of challenges firms face in providing independent and reliable valuations for OTC derivatives and the research provides possible solutions to aid firms in meeting these requirements. Improving workflow has been, and continues to be, at the forefront of our client’s minds for 2011 and beyond.”

Cutter Associates Announces 2011 CutterBenchmarking Topics (October 2010)

Thu, 28 Oct 2010 00:00:00 -0500

Third Party Service Management, Internal Operating Models, New Technology Application, and Data Security Top List

October 28, 2010 - Boston, London – Cutter Associates, a research, consulting, and benchmarking firm supporting the investment management industry, today announced the 2011 CutterBenchmarking topics for analysis.

Annually, CutterBenchmarking examines the effectiveness for four investment processing functions and provides detailed insight for individual firms relative to their industry peers. CutterBenchmarking member firms across North America and Europe voted the following topics as most pressing for benchmarking analysis in 2011:

Managing Third Party Services
Operational and IT Structure & Costs
Application of New Technologies in Investment Firms
Data Management: Security and Access Control Strategies

Jacqueline Alvarez, Managing Director, CutterBenchmarking, commented “In this day and age, firms are looking for feedback from peers on innovative operational strategies. Our new topics reflect important concerns about applying new technologies and about managing data, operations, and third party services. Our analysis will reveal new ways to expand, save money, and increase operational transparency for our members firms.”

Cutter Associates Technology Alliance Meeting Spotlights Recent Research and Upcoming Industry Challenges (October 2010)

Mon, 04 Oct 2010 00:00:00 -0500

October 4, 2010 - Boston, London – Cutter Associates, a research, consulting, and benchmarking firm supporting the investment management industry, today announced that over 120 members representing 55 investment management firms participated in Cutter’s Technology Alliance™ meeting held September 27th and 28th in Boston. The Technology Alliance provides 74 mid-sized North American investment management firms with independent, up-to-date research, including in-depth vendor evaluations and recommendations.

Research presentations over the two day event included Liquidity Management/Trade Execution, Post Trade Processing, and Investment Accounting Systems. Complimenting these presentations were discussion panels which provided the clients’ perspective on investment accounting and post trade processing systems.

The meeting also included Cutter’s perspective on the upcoming challenges of Financial Reform (FinReg) including the potential impact on post trade processing and data management. Additional sessions included an economic outlook presented by a well-known industry thought leader, post trade processing outlook, and a perspective on implementing Trade Cost Analysis (TCA) into the trading process.

Gina McCafferty, Principal and head of CutterResearch, notes “The research provided a comprehensive review of front, middle, and back office solutions, along with perspectives on member challenges and leading practices surrounding these applications. Our research topics are compiled from client feedback and continue to be direct reflections on what is at the forefront of the IT and Operations areas of investment management firms.”

Focus on Data Issues at Cutter Associates West Coast Forum (August 2010)

Tue, 03 Aug 2010 00:00:00 -0500

August 3, 2010 - Boston, London Through a unique combination of three business lines - research, consulting and benchmarking - Cutter Associates works closely with asset managers to improve investment processing and make them more competitive.

Today, Cutter Associates announced that over 40 attendees representing 20 investment management firms participated in the inaugural West Coast Forum held July 27th in Los Angeles.

Attendees discussed pressing industry issues, with particular focus on Data Organizations and Governance; Reporting Practices and Market Data Sources and Data Vendor Management. Cutter Associates experts introduced each topic with a presentation, which was followed by in-depth roundtable discussions on member practices among attendees. Participants were surrounded by local peers from the region, and were exposed to networking and knowledge sharing with other attendees.

The event was well received by attendees, with one participant stating “The West Coast Forum was informative and value-adding, offering an excellent way to exchange ideas and see what other firms are doing in our local area.”

Cutter Associates’ European presence boosted by appointment of Hugh Griffiths (March 2010)

Tue, 30 Mar 2010 00:00:00 -0500

March 30, 2010 – London, Boston – Cutter Associates is pleased to announce that Hugh Griffiths has joined the CutterConsulting team in Europe. Hugh is a seasoned professional with more than 25 years of experience with business operations and supporting systems in the investment and securities industry. Says Hugh, “Cutter Associates is renowned and respected for the quality and depth of its services in the investment management industry. I’m delighted to have the opportunity to support Cutter’s growth as it responds to ever-increasing demand for its services across the UK and Europe.”

Phil Tattersall, Director of Consulting Europe, states that Hugh’s appointment underlines Cutter’s commitment to the European region. “Hugh’s detailed understanding of the investment operations area will be an invaluable intellectual asset to the firm as we continue to work with our clients to understand and solve their investment processing challenges.”

Enterprise Architecture, Market Data, Performance and Attribution and Pricing and Valuation top list of 2010 priorities for CutterBenchmarking global membership (March 2010)

Wed, 17 Mar 2010 00:00:00 -0500

March 17, 2010 - Boston, London – Through a unique combination of three business lines - research, consulting and benchmarking - Cutter Associates works closely with asset managers to improve investment processing and make them more competitive. CutterBenchmarking member firms from North America and Europe voted the following topics as their 2010 priorities for benchmarking analysis:

Enterprise Architecture
Market Data
Performance and Attribution
Pricing and Valuation

Cutter Associates is also pleased to announce overall enhancements to the CutterBenchmarking product. Based on detailed client feedback, Cutter Associates has redesigned its benchmarking solution to provide more actionable and focused analysis to help participating firms enhance and streamline their investment processing capabilities. Key enhancements include more focused surveys, redesigned reports, specific actionable recommendations and key survey findings for senior management reporting.

Jacqueline Alvarez, Managing Director, CutterBenchmarking commented “Cutter Associates works with our member firms to analyze and evaluate the topics they identify as key priorities for the upcoming year. Through CutterBenchmarking, we aim to help our clients improve their operational effectiveness and increase efficiency. The additional enhancements to the CutterBenchmarking product allow us to match client demand by tailoring our offering to their business needs."

Phil Tattersall to help grow CutterConsulting in Europe (July 2009)

Thu, 09 Jul 2009 00:00:00 -0500

Boston, MA - 9 July 2009 Cutter Associates is delighted to announce that Phil Tattersall is joining Cutter Associates to concentrate on developing the consulting business in London.

With 23 years working within the asset management industry, Phil brings a wealth of expertise and knowledge to his new role. Phil spent 9 years at Citigroup Global Asset Management, latterly in the role as Head of IT, and 14 years as a consultant, in which capacity he worked at many of the leading global asset management firms. Apart from having domain experience in important areas such as enterprise data management, Phil has demonstrated the ability to deliver, with a talent for project and programme management and a keen understanding of strategic business and IT analysis and planning. He has a BSc in Mathematics from Warwick University and an MBA from Warwick Business School. He is Prince2 accredited.

Paul Stevens, Managing Director of Cutter Associates’ European business, observed that “Phil fits the Cutter mould perfectly: he understands the practices, processes and systems of our industry, and has the breadth and depth of experience to add tremendous value to our clients”.

Phil remarked that “Cutter Associates is unique amongst their competitors in having a singular focus on asset management, an operating presence in multiple geographies, and an interlocking set of services comprising consulting, research and benchmarking; all of which adds up them being well positioned as market leaders”.

Cutter Associates Boosts Growth with Appointment of John Clark as President and CEO (February 2008)

Tue, 19 Feb 2008 00:00:00 -0500

Boston, MA and London - 19 February 2008 - Cutter Associates moves to the next level of its growth with the appointment of John Clark as President and Chief Executive. Mr Clark has managed CutterConsulting for the last eight years and has established a record of excellence that has gained the respect of clients and Cutter personnel alike. He is well-equipped to take on the added responsibilities of Cutter’s other two business lines, CutterBenchmarking and CutterResearch, with his previous experience as President of DSTi and as COO of The Longview Group.

During Mr. Clark’s tenure at Cutter Associates, he has been recognized as a thought leader in the area of investment systems strategy. Mr. Clark strengths come from his ability to combine architecture and business domain knowledge into workable solutions for investment companies. Mr. Clark has led strategy engagements for all types of companies including insurance, mutual funds, Institutional separate accounts, and private banking. More recently, he has worked on strategies for derivatives and risk management.

Mark Bobseine, President and Chairman of Cutter Associates, says “John Clark is a proven leader who has demonstrated great skill in delivering high quality solutions to clients.” Mr. Bobseine will remain as Chairman and concentrate on new initiatives for the company and managing relationships with existing clients.

International Conference Outlines Technological Innovations in Wealth Management (October 2005)

Tue, 18 Oct 2005 00:00:00 -0500

Boston, MA and London – 18 October 2005 - Representatives from more than 40 financial institutions celebrated Odyssey’s tenth anniversary at their annual conference in Brussels on 3-5th October 2005. Over 200 delegates joined consultants from the wealth management industry during two days of presentations, workshops, discussion and entertainment.

Keynote speakers from many of Odyssey's customers and partners worldwide led plenary sessions and workshops. Represented firms included ABN AMRO Netherlands, CIBC Asia, Barclays UK, Deutsche Bank Belgium, Accenture Paris, Cutter Associates US, Renaissance Capital Moscow, Bank Ehinger & Armand von Ernst, Zurich, Bank Degroof Brussels, and the Banque Cantonale Vaudoise (BCV) in Lausanne.

James Hollis, CFA, facilitated the round table discussion, A global comparison of major wealth management trends and the evolution of HNWI in regional markets. Mr. Hollis, a Managing Director with Cutter Associates, highlighted the growth in global competition and the importance of technology in the wealth management industry. He shared his expertise on differentiation, segmentation, open architecture, virtual collaboration and service delivery.

According to Mr. Hollis, "Holistic client-based advisory product/service is very technology supported and obviously promotes capabilities that are becoming significant competitive advantages in an increasingly competitive industry. Although the demographics worldwide show a significant growth in affluence and need for wealth management in both developed and developing countries, many surveys still indicate the industry has yet to truly satisfy their clients’ needs."

The roundtable concluded that the wealth management industry focus appears to have returned to increasing revenue rather than cutting costs and that increasingly rigorous compliance and regulatory requirements are a continuing global trend. Mr. Hollis commented that the US regulator, the Securities exchange Commission, is now "fully funded and fully staffed and cooperating with overseas regulators in Europe and Asia to do a more constructive and efficient oversight of the investment management industry". He went on to explain the differences in the US wealth management marketplace compared the European venue and the apparent trend toward uniform regulation for all participants.

Cutter Associates™ Introduces Benchmarking Practice (October 2005)

Mon, 10 Oct 2005 00:00:00 -0500

Boston, MA and London – 10 October 2005 – CutterAssociates has created a benchmarking service to help investment management firms to understand their current operating capabilities and effectiveness and to assist in establishing priorities for improvement. CutterBenchmarking™ is a natural progression from CutterAssociates’ industry-leading research division and benchmarking survey work.

"Investment systems managers and operations professionals are often measured by their ability to deliver high-quality results – on-time and on-budget," says Mark Bobseine, President, CutterAssociates. "However, performance has different meanings depending on an individual’s role in the organization. The CIO thinks of operating cost and system performance; business clients want extensive functionality and ease of use; the COO measures process efficiency and risk mitigation; and the CFO looks at ROI. They are all valid approaches. And they each have the expectation that these investment systems managers and operations professionals will improve performance over time."

"CutterBenchmarking will work with firms to define the metrics needed to evaluate operational effectiveness and to assess technology and operations costs", offers Robert Klehm, Managing Director, CutterBenchmarking. "Firms will be able to compare their performance against others in their peer group.

Armed with this information they will be able to prioritize their technology investments and process improvements. Over time, they will also be able to chart improvements in performance and continually gauge the company’s operations against ‘best-in-class’ achievers."

All investment management firms collect at least some operating data to assess their ongoing performance, and they use this information to re-align initiatives or defend budget requests. While this process works, it suffers from "measurement myopia". Without any external comparison it is very difficult to differentiate which initiatives require the most attention, pose the greatest risk and promise the greatest return. If a firm observes that some of its peers excel at trading, they might want to raise the bar on their own trading capabilities. If an organization is having difficulty implementing algorithmic trading and find that all of the companies in their peer group are facing the same challenges, they could modify expectations for this effort without incurring the wrath of traders and other business users.

"Based on more than ten years of research and consulting in investment management systems and operations, CutterAssociates has identified the key metrics that investment management firms need to effectively assess their operations performance," stated Mr. Bobseine. "For each function CutterBenchmarking defines the most appropriate metrics – those categories that are most useful for recognizing achievement and that are actually measurable."

"Driven by the rapid changes in trading practices and technology, we will focus initially on trading," stated Mr. Klehm. "Market-leading firms are using trading technology to enhance portfolio performance, lower trading costs, lower operational and market risks, and optimize trading strategies. Metrics will include information on order placement sophistication, trading strategy, trade cost analysis, broker evaluation and selection, program trading capabilities, block trading, liquidity analysis, connectivity, etc. The sum of these metrics provides a balanced and holistic view of a firm’s entire trading operation."

CutterBenchmarking will collect data annually from each member firm and prepare a benchmark report for the entire group, as well as for each peer group. In addition, CutterBenchmarking will identify best practices for each functional area and analyze the data for trends and anomalies. Assessments and the detailed report will be available only to CutterBenchmarking members.