Fixed Income Performance Attribution and Analytics: You Reap What You Sow

Varying post-trade approaches are pain points that managers and third-party solutions providers are trying to address.

London, 24 November 2020 – Buy-side firms are choosing to reduce their costs and improve efficiency by outsourcing internal functions across the investment life cycle, including the calculation of key analytics, such as performance measurement and attribution. But fixed income attribution analytics isn’t a scalable process that can be outsourced like attribution calculations used in other asset classes. The size and heterogeneity of the fixed income universe of instruments and the amount of data required to measure different effects on the portfolio present a number of challenges for managers, and the new demands being placed on attribution teams make their choice of technology paramount.

This report highlights the unique aspects of FIAA and the most recent trends among buy-side institutions. It examines the contrasting business models of buy-side firms, which impact the preferred attribution methodology, the frequency of reporting, and the role of technology, and breaks down the most common challenges for the end users of attribution systems. It is based on Aite Group interviews conducted between May 2020 and October 2020 with buy-side market participants across the globe.

This 38-page Impact Report contains 19 figures and two tables. Clients of Aite Group’s Institutional Securities & Investments service can download this report, the corresponding charts, and the Executive Impact Deck.

This report mentions BlackRock, Bloomberg, BNY Mellon, Calypso, Charles River, Clearwater, CloudAttribution, Confluence, FactSet, Finastra, FIS, Flametree, IMTC, MSCI, RiskFirst (Moody’s), Ortec Finance, Simcorp, and SS&C.

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