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21 April 2020

Multi-Strategy Portfolios Benefit Clients, Let Technology Benefit You

Asset and wealth management firms are looking for ways to provide diversified portfolios to clients more efficiently, cost-effectively, and at scale. For private investors, having their manager address their investment needs holistically has become par for the course. For institutional investors, firms are looking at diversification among traditional and alternative asset classes in the quest for alpha. A common way to address these goals is through the creation of multi-strategy portfolio (MSP) or multi-asset portfolios (MAP). This often translates to multiple sleeve accounts that represent respective strategies within a single custodian account, or multiple custodian accounts for an investor, with each account representing a strategy, combined into a single household portfolio.

Although the multi-strategy and multi-asset portfolio terms are often used interchangeably, both approaches are based on investor objectives, and ultimately have an overarching goal of delivering a diversified portfolio in an efficient manner with a variety of different benefits for the managers and investors alike.

For investors, these benefits include:

  • Simplified paperwork
  • Lower custody fees
  • Simplified tax reporting
  • Consolidated reporting
  • Clearer picture of their investment portfolio

For portfolio managers focused on overlay portfolio management, these multi-strategy and multi-asset portfolios offer efficient ways to diversify, manage risk and optimize tax efficiency. Conversely, portfolio managers responsible for managing individual strategies need the flexibility to make bottom-up adjustments at scale across the book of business.

So how can firms implement these diversified investment solutions at scale more efficiently?

With the addition of Advent Genesis to our asset management suite, SS&C Advent can now deliver an end-to-end solution for building, managing, and accounting for multi-strategy and multi-asset portfolios across the front, middle, and back offices. Starting in the middle or back-office with Advent Portfolio Exchange (APX) for sleeve accounting, portfolios and sleeves easily flow to the front office through Advent Genesis where portfolio managers can now adjust overlay allocation targets with automated cash sweeping between sleeves. A portfolio manager can easily gain better insight across all the strategies in a portfolio or all portfolios allocated to a particular strategy. Most significantly, Genesis makes it easier to implement adjustments across multi-strategy and asset portfolios at scale, while reducing the pressure on operations teams that often comes with having to properly account for and report on the activity, performance, and contribution of each strategy.

Firms on Genesis praise the ongoing investment in cutting edge functionality to help serve their clients, make more informed decisions and navigate the markets more efficiently. Listen to a client or request a demo to learn more.