Performance Attribution Implementation

Implementing a performance attribution software solution needs flexibility and attention to detail to get right. We take your input data in whatever form you can provide it, then build a performance calculator that is tailored to match yours.

High-quality performance is the foundation to create detailed and trustworthy attribution. Keeping the models straightforward and focusing on the data that is really needed reduces the analytics footprint required. Our approach is to reuse existing front office sources.

During and after the performance attribution implementation process, our specialist team works closely with you to provide advice, support and continuous improvements to ensure the system works seamlessly, incorporating your feedback and quickly fixing issues as they arise.

Our aim is to get you using the system as fast as possible. Nobody enjoys implementation: it is results that we want to see!

Anton Karadakov, Co-founder, CloudAttribution

Core areas

Implement Faster

Match Performance

Minimal Data

True Partnership

Implement Faster

Implementation times can be shortened by reducing the amount of data required and the number of transformations of that data.

In addition, reusing data already checked and employed elsewhere in the organisation removes the need to initiate new feeds and the initial and ongoing checks that entails.

Our Solution

We undertake the transformation in the system. We have the flexibility, tools and knowledge, we have followed this process many times and we are experts at it.

Our models are designed to take front office analytics leveraging as a high quality data source with the added bonus that the front office see the results they expect.

Match Performance

Matching the ABOR performance numbers is a first requirement for users to be able to trust the attribution results.

Building checks around the individual security contributions builds on that to give trust at that level too.

Our Solution

We build a bespoke performance model to match each accounting platform. It handles the idiosyncrasies, particularly of derivatives, that each system possesses.

We build in security level consistency checks to feed back what to correct. The accounting data quality improves.

Minimal Data

Attribution is a data hungry process. But some processes are hungrier than others.

Key rate (KRD) models are often chosen in fixed income with little consideration to the mountain of analytics data that choice requires.

Even standard yield-based models will likely require new data sources.

Our Solution

Our primary fixed income attribution models use a returns-based approach. They typically have broader applicability than KRD or yield-based and at least as much detail.

In multi-asset we have created ways to attribute underlying exposures, particularly currency, without confusing the analysis.

True Partnership

It seems obvious to state but attribution, not implementation, is the desired end product.

Implementations needs flexibility to avoid stalling and models need to be manageably complex.

Even after implementation it can help to have experts on hand to aid in interpreting some of the results.

Our Solution

We work with you, making alterations where necessary to ensure successful implementation.

This assistance continues after implementation to make sure you maximise insights from the data and to provide ongoing system improvements.

Performance Attribution Implementation – Problems and Solutions

Problem

Issues

Our Solution

Problem

The Client Does the Heavy Lift

A typical implementation puts the onus on the client to be flexible, provide the data in the right format and transform it where necessary.

Issues

Implementation expertise is often with the system provider
But the work remains with the client
Transformations introduce another potential source of error
Ongoing maintenance can be onerous and bureaucratic

Our Solution

Transformations happen within the system
Our approach is flexible and transparent
We can advise on every step in the process

Problem

Quality Requires Feedback

The more noise there is in the model, the harder checking gets. The more complexity there is, the harder it is to reflect everything correctly.

Issues

Taking performance contributions makes error checking hard
In fixed income, yield-based models create a residual
In multi-asset, drilling down to 1,000’s of assets creates complexity

Our Solution

Bespoke performance pinpoints booking errors
Performance based model removes the residual
Currency look-through reduces complexity

Problem

Monolythic Systems

Large scale systems aiming to do everything rarely do anything well. Making changes requires a huge upgrade process.

Issues

Built to handle lowest common denominator
Data centre based so difficult to change
Upgrade relies on client so it is often skipped

Our Solution

Many bespoke elements
We only do attribution
Cloud-based architecture enables minor tweaks
We work with your data so can ensure compatibility

ESG Attribution Implementation

ESG Attribution Implementation We regularly incorporate ESG and analysts’ ratings into attribution and have seen how these can benefit asset…

Passive Investment Attribution

As tracker funds, passive investments must earn their keep. Handling the complexities of passive funds in an efficient manner is…

Reporting

Whether you need a quick overview, a side-by-side fund or portfolio comparison, or a deep dive into performance and attribution…

Strategy Tagging

View performance by strategy rather than sector Absolute-return portfolios are frequently managed using a combination of derivatives and long/short exposures…

Get in touch

Fill in your contact details along with your enquiry and one of our team will be in touch with you as soon as possible.

info@cloudattribution.com

Seamless Performance Attribution Implementation & Integration

Core areas

Implement Faster

Our Solution

Match Performance

Our Solution

Minimal Data

Our Solution

True Partnership

Our Solution

Performance Attribution Implementation – Problems and Solutions

The Client Does the Heavy Lift

Quality Requires Feedback

Monolythic Systems

Services

ESG Attribution Implementation

Passive Investment Attribution

Reporting

Strategy Tagging

Get in touch