Radically restructuring your internal operations is a bold move. While there are big rewards on offer, the risks can be significant—especially when you are a major global, multi-asset class asset manager. So when our client decided to switch to a fully-managed data service, it knew it needed an experienced and reliable partner.
Previously, the firm had set up its data operations in a similar way to most traditional asset managers. It was deriving its index and constituent level data from a range of sources, with a competitor data service providing the majority of the asset manager’s equity data, while most of the fixed income data was sourced directly from the underlying vendors. From there, the asset manager calculated its benchmarks—a mix of single index benchmarks and blends of multiple underlying indices—inhouse in a variety of places across an assortment of systems, including its legacy portfolio management system and some internally-developed blending tools. The firm then tried to replicate those calculations in the different business areas they were needed. This produced numerous problems. It was operationally disjointed, subject to significant quality issues and internally resource-hungry. In particular, its main equity data provider frequently delivered erroneous data, while the file formats would often change. As a result, one data management employee was dedicated almost full time to monitoring, managing and readapting the files.
RIMES’ superior benchmark data quality and dynamic blending engine has enabled the asset manager to reduce data costs, free up staff, increase its adaptability and enhance data governance.