The document discusses the changing role of middle offices in asset management firms. Middle offices can no longer just process numbers and must provide strategic insights through data analysis. To do this effectively, middle offices need clean and accurate data as well as strong analytical capabilities. Smaller boutique asset management firms are well-positioned to transform their middle offices due to their flexibility and agility. Embracing new technologies, they can create a single, clean data set and provide the accurate analytics and tracking needed to inform strategic decision-making.

1. Go Figure
DATA PROCESSING IS NEEDED
BUT ANALYTICAL INSIGHT IS
THE REAL VALUE

2. Middle offices are experiencing a role transformation.
They can’t simply process the numbers anymore.
They need to do more with the data.
In today’s market, their output
must add real strategic value.

3. In other words, data needs to be operationally excellent.
This isn’t just a question of cost. Middle office
output needs to inform and persuade
decision making elsewhere within the firm.
MAKING THE
NUMBERS COUNT
“The overall priority is managing data
as an important corporate asset.”
GLOBAL ASSET MANAGEMENT AND ADMINISTRATION, LINEDATA 2016

4. Reasons why:
• They can be more nimble and ‘hands on’ than their larger competitors.
• They are more adept at changing their workflows.
• They can extend the data they capture and change the way it is analyzed,
how it is distributed and to whom.
• They are used to higher levels of collaboration within the business and
have a better understanding of how their work impacts others.
SMALLER FIRMS ARE
IDEALLY PLACED TO DO THIS

5. “Intelligent application of
technology plays a vital
part in any firm’s success.”
GLOBAL ASSET MANAGEMENT AND ADMINISTRATION, LINEDATA 2016

6. To fulfill its potential, the middle office
needs strong capabilities in four areas:
TAKE FOUR
1. Clean data at input level.
2. The ability to service internal and external customers with
accurate analytics.
3. The ability to track and make sure that data is treated
correctly and remains clean throughout its journey.
4. A good understanding of why other business units need the
data and how it is used.

7. Let’s look at this
in more detail

8. CLEAN DATA
Boutique asset management firms are not tied
down by historical legacy systems that result in
separate data silos and large replacement costs.
This means they can embrace the brave new world
of big analytics and create a single copy that can be
adjusted for various purposes.
“Low quality data would lead to incorrect
calculations and records and may even
attract the attention of regulators.”
GLOBAL ASSET MANAGEMENT AND ADMINISTRATION, LINEDATA 2016

9. CLEAN DATA
If everyone uses the
same data and has the
same starting point,
it’s fair to assume the
analytics will be accurate
and comparable.

10. Having the right technology to take in data and
normalize it - and then perform the right analytics
to answer the questions that the various users are
asking of it - is increasingly important.
Defining the questions and being able to
visualize data to bring out what is
important is another essential skill set.
Middle offices must provide this level of service if they
are to become central to the firm’s strategic thinking.
ACCURATE
ANALYTICS

11. Being able to follow data through its journey and
accurately pinpoint where analytics have been applied
(and for what purpose) makes for better overall
awareness and understanding of the data.
It also allows for adjustments to be made and
means the data can be recalibrated as required.
THE ABILITY TO
TRACK CLEAN DATA

12. In the sub £10bn AUM space, asset
managers can operate with greater
flexibility and are more open to change.
These smaller, more agile players will be the
ones who lead the change needed to take
the asset management industry forward.
With new technology coming into the
market, they will be in a stronger position
to compete with the largest firms.
THE OPPORTUNITY
TO INNOVATE

13. TOP PRIORITY
“From outsourcing to multi-asset classes
to global operating models, the biggest
story is all about data. Could 2016 finally
be the year when data management
initiatives take a front seat?”
2016 OUTLOOK, CITISOFT

14. • Middle office output needs to inform and persuade
decision making elsewhere within the firm.
• Clean data that is accurate and trackable is essential
to this task.
• Having the right performance and risk analytics
capability goes hand in hand with the data.
• Data management is now a main agenda item for
many COOs and their Heads of Performance and Risk.
TAKEAWAYS

15. LOOKING FOR
IMPROVEMENT IN
YOUR MIDDLE OFFICE?
Risk and performance analytics 2016-2020
The future business case for boutique asset management firms
Review how smaller asset managers are
shaping up their middle offices for the future.
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