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The purpose of behavioral analysis in investment management is to examine active investment management decisions and create a plan to improve behaviors detrimental to alpha generation. This whitepaper offers an introduction into the pressures investment managers are under that are driving them to use behavioral analysis, common types of behaviors that jeopardize alpha, and a summary of providers of behavioral analysis software and services.
Behavioral analysis service providers highlighted include: Alpha Theory, Cabot Investment Technology, Essentia Analytics, and Inalytics.
This report contains the results of Cutter Associates research on governance, risk, and compliance (GRC) for investment management. It includes information on industry issues and trends, challenges and best practices, and GRC systems.
The research focuses on how investment management firms are designing effective and efficient GRC approaches that align people, processes, and technology with a firm’s risk appetite, internal policies, and external regulations. It also explores the vendor landscape and provides an overview of some GRC vendors and their system capabilities.
We summarize the GRC capabilities of the following vendors and products: 360factors: Predict360, CAMMS Group: cammsrisk, CURA, Dell Technologies: RSA Archer GRC , Ethidex: Compliance Office, Galvanize: HighBond, IBM: OpenPages with Watson, LinkResQ Ltd: CalQRisk, LogicGate, LogicManager, MetricStream: M7, NAVEX: Lockpath Keylight, Onspring Technologies, ProcessUnity, Protecht Group: Protecht.ERM, Refinitiv: Risk Management, Resolver: ResolverCore, SAI Global, SAP: SAP GRC, Wolters Kluwer, and Xactium.
This report on alternative investments provides information about solutions that can be used at various stages of the investment lifecycle, including systems that support contact management, due diligence, deal pipeline management, document management, portfolio construction, portfolio monitoring and analysis, and operational support.
This research includes an overview of the vendor landscape, insight into CutterResearch member system usage and practices, and detailed reviews of systems with varying functionality to support direct and indirect investments in infrastructure, private equity, and real estate. This report features reviews of Backstop Solutions, BlackRock (eFront), Burgiss, Dynamo Software, FIS, Mercatus, SimCorp, and Yardi.
This research investigates environmental, social, and governance (ESG) investing, the state of the market, and challenges experienced by asset owners and asset managers. It profiles third-party products that offer ESG data, ratings, evaluation, and services.
The research looks at the different forms of ESG investing, and practices of CutterResearch member firms, the industry bodies involved, and drivers behind the recent growth We profile different types of service providers offering ESG data, ESG ratings, specialist portfolio evaluation, and proxy voting advice.
We provide descriptions of the following providers of ESG data and services: Arabesque S-Ray, Beyond Ratings, Bloomberg, Carbon Delta, Ceres, Climetrics, CSSP: yourSRI, FactSet, Four Twenty Seven, FTSE Russell, Glass Lewis, ISS, Morningstar, MSCI ESG Research, Refinitiv, RepRisk, RIMES, S&P Global Markets Intelligence Trucost, State Street ESGX, Sustainalytics, Truvalue Labs, Verisk Maplecroft, Vigeo Eiris.
Investment management firms use predictive analytics to optimize processes and to identify early warnings of process anomalies. Predictive analytics use historical data to predict future outcomes based on current data, and use machine learning to create models that help identify patterns and behaviors that predict risky situations. This research explores how Operations teams can leverage predictive analytics and models to provide much earlier warnings to predict and prevent operational loss, and presents some options on how to get started.
Steady growth in investors’ interest in environmental, social, and governance (ESG ) issues means additional considerations in the investment process, demands for more and better information, and pleas for standards. This paper explores aspects of ESG investing, including industry initiatives, changing regulations, the focus on climate change, and debates on investment performance.
Allocations to alternative assets continue to grow, with a recent Preqin report estimating that alternative investments will reach USD 14 trillion worldwide by 2023. These assets often deliver higher returns compared to public assets and they can help to manage downside risk, but as more investors increase their allocations to private equity and real estate, other firms are looking to new areas to invest. In this paper, Cutter Associates discusses two types of investments: infrastructure, including Public-Private Partnerships (P3) investment in the United States, and music royalty rights.
In this paper, Cutter Associates explains the background, characteristics, and types of cryptocurrencies, as well as some of the reasons institutional investors are interested in and skeptical about investing in them.
This research into Managed Data Services (MDS) provides an overview of the types of data management services available, the factors driving investment managers to consider them, and how firms currently use them. It includes a summary of a broad range of MDS providers and services tailored to investment management needs.
The research examines the services member firms use to support their data management efforts. It includes discussions of the various types of data that services can manage, such as market and reference data, operational data including holdings and transactions, and derived data such as performance and risk. We profile different types of managed data service providers including standalone MDS providers, EDM and other software vendors / platform providers who include managed data, and data service providers.
We provide descriptions of the following service providers: AIM Software GAIN Managed Data Service, Asset Control Managed Data Service, Axioma, BlackRock Solutions Aladdin, Bloomberg PolarLake Data Management Utility, Broadridge Managed Data Services (BMDS), Charles River Data Service and Data Management Service, Clearwater Analytics, Crux Informatics, Eagle Managed Services, Electra Data, FactSet Portfolio Services, Fidelity Corporate Actions Solutions (FCAS), GoldenSource OnDemand, IHS Markit EDM Managed Services, Markit Corporate Actions (MCA), IVP Managed Data Services, Kuberre Systems, Morningstar, RIMES Managed Data Service, SmartStream Reference Data Utility, SS&C Advent Managed Data Service, SS&C SVC, State Street DataGX, and STP Investment Services.
This research explores the supplier landscape, industry trends, and investment management practices related to managing benchmark and index data. The research summarizes current challenges faced by investment managers and discusses their areas of focus for improvement.
This research includes descriptions of the originators and redistributors commonly used by member firms. The following providers are among those described in this report: FactSet, FIS, FTSE Russell, ICE Data Services, IHS Markit, J.P. Morgan, MSCI, Refinitiv, RIMES Technologies, S&P Dow Jones Indices, STOXX, and Wilshire.
This report on asset allocation provides information about solutions that can be used at various stages of a top-down investment process, from strategic design and evaluation through to the implementation of multi-asset and other custom strategies.
This research includes an overview of the vendor landscape, insight into CutterResearch member system usage and practices, and detailed reviews of systems with varying functionality including support for stochastic forecasting and optimization, data collection and aggregation, analysis and simulation, cash allocation and rebalancing, limit compliance, and instruction management. This report features reviews of ACA Technology Solutions NorthPoint IMS, AlternativeSoft, Axioma Portfolio, BlackRock Solutions Aladdin, Calypso, Ledgex, Matrix, Milestone Group pControl Asset Allocation, Ortec Finance GLASS, SimCorp Dimension, Solovis, Willis Towers Watson STAR RW.
CEOs today have higher expectations for CMOs and their teams. They want marketing to do more to attract new clients, serve existing clients, and grow AUM.
This report contains the results of Cutter Associates research into the age-old debate between all-in-one and standalone (best of breed) solutions.
This research provides background on the industry drivers, member practices, and challenges related to decisions about their system architecture. It also explores how different types of software and service providers view this dichotomy, and how the landscape may be changing.
This report contains the results of Cutter Associates research into Integrating Investment Systems, it includes an overview of the approach investment managers take to data and systems integration against a background of technology changes such as cloud deployment and APIs.
We also look at where integration strategy fits with data governance and architecture. We summarize the types of vendors and tools that support integration.
The research examines the ways member firms integrate applications, including the integration methods and software tools they use. We include discussions of systems architecture approaches because they are fundamental to integration design. We also provide information on industry issues, trends, and developments in integration tools such as APIs, cloud deployment, and integration platform-as-a-service.
We provide descriptions of the following vendors, some provide pure integration tools, others act as hubs for data and include integration capabilities: Ab Initio, Attunity, AWS Data Pipeline, Axway, Dell Boomi, Denodo, Eagle, GoldenSource, Informatica, MarkitEDM, Microsoft Azure Data Factory, MuleSoft, NeoXam, Oracle, Pentaho, Talend, TIBCO.
This research provides an overview of the practices investment managers use creating client reports and current industry trends, especially related to customization and data. It also provides assessments of vendor tools that support client reporting.
Areas covered include an overview of trends we see in client reporting, the current practices of CutterResearch member firms, an overview of changes we have seen in the vendor landscape since we last covered the topic in 2013, and practical advice for client reporting practices. Reviews of systems that support client reporting include Assentis Technologies DocFamily with SolPresent, Factbook Studio 10, FactSet VRS, Seismic, SimCorp Coric, SS&C Technologies Vision FI, and Xinn. Additional information on offerings by Assette, IHS Markit, Investcloud, Kurtosys, and Satuit are also included.
CutterResearch content is the proprietary property of Cutter Associates and our members who have entered into confidentiality agreements. It contains information that is proprietary and confidential to Cutter as well as to the vendors discussed within the reports (the "Vendors"). Disclosure of the information contained in the reports could cause irreparable harm to Cutter and/or the Vendors.
By selecting "I Agree" below, you agree to safeguard this information with the same care as your firm affords its own confidential information. You will not provide access to this information to anyone who is not an employee of your firm and will not distribute this information outside your firm. Furthermore, you will not provide access to this information to any employee of any subsidiary, unit, department or division of your firm that is engaged in any aspect of the software business involving third parties, including, without limitation, selling or otherwise providing software to third parties, assisting third parties in the selection or implementation of software, or providing investment related software information to third parties (collectively, the "Prohibited Recipients").