What is client reporting?
(FactSet provides new insights from a recent report which provided a comprehensive view of where the performance measurement sector now stands–and how performance teams are navigating the remote work revolution.)
In a recent research study where we spoke to more than 300 asset management decision-makers around the world, it is evident there are changes taking place among performance teams.
Their feedback provides insight into where the occupation stands today and the near-term path forward.
We’d like to share with you the highlights of two developments the study has revealed: department integration and skillsets.
Combining Into Risk and Reporting Teams
A material change across performance teams is the increased integration with other parts of the business.
In our research, 65 percent of respondents said their performance teams are integrated with risk teams while 58 percent said they’re joining reporting teams. A majority of respondents, 98 percent, said they anticipate further integration with either the risk or reporting groups in the near future.
As with any combination, there’s a need for thoughtful balance. More than two-thirds of respondents said their performance team is valued by the organization and is perceived as offering good value.
To avoid diluting the performance team’s capabilities — and the real benefits they provide to the business — firms need to consider how to keep the core performance skillsets front and center throughout (and especially after) the integration process. Firms also need to enable teams to maintain a sense of ownership and control. Doing so could help address the worry of some respondents that perceptions of that role will be diluted or even negatively impacted if performance teams are simply merged into other functional groups.
Growing Demand for New Skills
Because the operating environment is evolving, asset management firms are simultaneously seeking to add new competencies and capabilities to their performance teams.
As the chart shows, more than half of respondents said the No. 1 in-demand set of skills they want to add are performance attribution and analysis techniques.
And nearly half of respondents are seeking performance professionals with knowledge of risk assessment and management frameworks.
There are also two notable findings to highlight from the lower half of the above chart.
First is that 34 percent of respondents view Python coding (i.e., advanced data analytics and modeling) as an in-demand skillset. We believe the need for that skillset is building momentum, and we anticipate it will grow rapidly in the near term.
Second, reflecting the shift to more individuals working in remote locations, about one-third of respondents also seek strong communication, presentation, and project management skills. This highlights how organizations are striving to be nimbler and more productive.
Given the competition for hiring and retaining talented employees, some firms are using (or planning to use) managed services from a third party.
As the chart below shows, for example, nearly half (48 percent) of the respondents have outsourced reporting, and 44 percent have plans to do so in the next few years.
All respondents using such services say they have helped address the challenges their performance teams face.
In Conclusion
All said and done, there are continued positives for performance teams.
Professionals are increasingly in a position to work in a way that suits their individual needs and preferences while still serving clients. And they are being asked to undertake more interesting and sophisticated work by organizations that value their contributions.
Organizations that consider an optimal operating model and team structure — including the potential benefit of managed services and co-sourcing to fill gaps — could be assumed to have a competitive advantage.
Interested in reading the full research report? Click here to download your free copy of our eBook version of “In the Thick of It: How Performance Teams are Driving Value Across the Organization.”
