Guide to Investment Management Software: capabilities and how to select the right system

Introduction

This tutorial provides a comprehensive guide to selecting investment management software (IMS) suitable for various types of investment managers, including asset managers, asset owners, and hedge funds. It covers essential functionalities, user roles, and selection criteria to help you navigate the complex landscape of investment management technology.

Step 1: Understand Investment Management Software

• Define what an investment management platform is.
• Recognize its role in supporting front office activities, operations workflows, compliance, risk management, and performance attribution.

Step 2: Identify Users and Roles

• Active Users: Include front office staff, traders, and compliance teams who regularly use the software.
• Stakeholders: Identify non-active users like executives or risk managers who rely on the software for information and insights.

Step 3: Explore Key Functionalities

Investment Portfolio Management Software

• Track investment portfolios and performance metrics.
• Analyze asset allocation and investment strategies.

Order Management Software

• Manage order execution, including buy/sell orders.
• Monitor order statuses and historical execution data.

Execution Management Features

• Utilize tools for trading and execution to enhance efficiency.
• Access real-time market data for informed trading decisions.

Compliance, Analytics, Risk, and Performance

• Implement compliance checks to adhere to regulations.
• Use analytics tools for risk assessment and performance evaluation.

Investment Operations

• Streamline operational processes to improve workflow efficiency.
• Integrate operational tasks with portfolio management seamlessly.

Data Management

• Ensure effective data tracking and analysis across the organization.
• Maintain data integrity and accessibility for all users.

Step 4: Selection Criteria for Investment Management Software

• Functional Scope: Evaluate whether the software covers all necessary functional areas.
• Position and Cash Management: Ensure efficient management of positions and liquidity.
• Workflow Efficiency: Look for features that automate and streamline workflows.
• Connectivity and Integrations: Assess compatibility with existing systems and data sources.
• Multi-Asset Class Coverage: Choose software that supports various asset classes for flexibility.
• Modern Cloud Solution: Prefer cloud-native systems for scalability and accessibility.
• Costs and Pricing: Compare pricing structures and consider hidden costs that may affect total expenses.

Step 5: Learn About Limina IMS

• Understand Limina's unique cloud-native investment management technology.
• Recognize its capabilities for firms managing from hundreds of millions to tens of billions in assets under management.

Conclusion

Selecting the right investment management software involves understanding its functionalities, identifying relevant user roles, and applying a thorough selection process. By following the outlined steps, you can make an informed decision that aligns with your firm's current and future needs. Consider exploring Limina's offerings for cutting-edge solutions that cater to investment managers. For more information, visit the provided links and stay connected for ongoing insights.