Alternative Fund Managers Face Unprecedented Challenges
The investment landscape has never been more complex. Familiar headwinds, such as regulatory pressures and fee compression, now collide with emerging challenges like new areas of competition and economic volatility.
In a recent webinar, SS&C product experts Raya Gabry, senior director of product management, and Jordan Daub, managing director of sales engineering, unpacked these challenges in more detail and explored how outdated, disconnected technology can cost investment managers time and opportunities—costs they can no longer afford in today’s markets.
The Challenges Facing Today’s Alternative Fund Managers
Raya opened the webinar by discussing fund managers' challenges in their quest for alpha.
She noted that competition for inflows has intensified as investors seek lower-cost options through passive funds or higher-yield income investments. To justify their fees, alternative fund managers are adopting more complex strategies and diversifying into alternative asset classes.
As they diversify into new assets, many alternative fund managers find themselves using outdated, disconnected, and rigid order and execution management systems that put them at a disadvantage in an increasingly competitive market.
These fragmented systems consume excessive time and resources, slowing operations and eroding competitive advantage. Raya believes the reliance on separate tools creates workflows that depend heavily on manual processes, leading to frequent miscommunications and a lack of automation and standardization.
Moreover, these siloed solutions often lack comprehensive pre-, intra-, and post-trade compliance features, further hindering a manager’s agility and decision-making.
How the OEMS Bridges the Gap
To meet the demands created by multi-asset strategies, shifting regulatory requirements, and increased operational risk, Raya and Jordan see more and more managers integrating their OMS and EMS into a single, centralized OEMS platform.
OEMS technology combines the power of an Order Management System (OMS) and Execution Management System (EMS) into a unified solution. This seamless solution provides a single source of truth, reducing inefficiencies and preventing the issues that arise from using separate systems.
In the webinar, Jordan’s detailed demonstration of OEMS technology highlighted how combining the best features of both the OMS and the EMS into one system enables firms to streamline workflows, reduce operational risk, and cut costs, all while improving compliance and technology management across departments.
The OEMS: Keeping Pace with Market Demands and Opportunities
Both Raya and Jordan discussed how the features of the OEMS ensure managers have the technology they need to focus on their core competencies and meet evolving client demands.
For example, the uncertainty surrounding whether the Federal Reserve will lower interest rates – and by how much – presents an opportunity for leverage and arbitrage strategies. Additionally, private equity, with its debt financing component, becomes a more attractive investment in such times.
By adopting OEMS technology, managers can capitalize on these opportunities and expand into alternative asset classes. The capabilities of the OEMS ensure that firms are well-equipped to meet the needs of clients seeking exposure to these investments.
As client demands shift and investors reassess their portfolios, the OEMS allows managers to create and tailor investment products accordingly, providing them with a competitive edge.
Moving forward, Raya believes that having the ability to incorporate new asset classes easily and manage growing client relationships efficiently presents a significant competitive opportunity. This opportunity is only achievable if managers have the right technology to focus on their core strengths while effectively controlling costs.
Transform Your Front Office
In today’s high-stakes market, alternative fund managers cannot afford inefficiencies or missed opportunities. Adopting OEMS technology equips firms with the tools to navigate current challenges and unlock future opportunities with greater agility and precision.
Don’t let outdated systems hold you back—watch our Let’s Get Back to Basics: Your Front Office, Simplified webinar to discover how the OEMS can modernize your front office.
