This service is for fund managers wanting to benchmark what are termed "middle office", investment or market operations functions. Some of our clients outsource these functions, but we have clients who perform part or all of these functions in house.
The data and metrics for these functions are not standardised so we have a process in place for data capture with six outsource service providers. We provide monthly reports which show the quality of service received by our clients compared to their peer group. These include:
- Matching of equity, bond and OTC derivative trades.
- Correct processing of corporate actions and any losses caused.
- Price and other data file deliveries and system availability.
- Leading indicators of service quality including cash and stock reconciliations and staff turnover.
- Timely provision of monthly accounting and performance measurement reports.
The benchmarking of fees for investment operations is more challenging as they are non standard in the industry. We can perform restricted comparisons on specific functions or activities. Examples range from the annual costs of performance measurement for third party clients, to the initial trade set up, to annual maintenance of a single name CDS. More comprehensive fee benchmarking would be undertaken as part of the formal multi year reviews usually jointly initiated by the fund manager and outsource provider.