In an industry defined by complexity, wealth and asset managers are tasked with managing a growing volume of investment data across multiple custodians, asset classes, and regulatory environments. Historically, Portfolio Management Systems (PMS) have served as the backbone for managing this complexity, providing tools for portfolio construction, trade execution, and performance reporting.
However, traditional PMS solutions often fall short of meeting modern demands resulting in operating models reliant on the humble spreadsheet and/or siloed, specialist technology solutions operating independently.
Enter the era of Investment Data Intelligence (IDI) platforms, designed not just to manage investment data but to transform it into actionable insights. These platforms don’t necessarily replace a PMS (though in some cases they might); rather, they can work alongside it, enhancing its capabilities and filling critical gaps. This flexibility makes them an ideal solution for firms looking to future-proof their operations without overhauling their existing systems.
The Limitations of Traditional PMS
While PMS systems have been integral to investment management for decades, their architecture often reflects an era of simpler data requirements:
- Siloed Data: Traditional PMS systems often operate in isolation, limiting the ability to integrate data from multiple custodians and asset classes seamlessly.
- Limited Analytical Capability: Designed primarily for record-keeping, operational processes and limited reporting, many PMS solutions lack the advanced analytics capabilities needed to uncover deeper insights for multiple users across a business. This is why many managers still rely on high-risk, manual processes and spreadsheets to complement their PMS.
- Rigid Architecture: Legacy systems are often inflexible, making it difficult to adapt to changing client requirements or integrate emerging technologies like AI.
How IDI Enhances or Replaces PMS Capabilities
A data intelligence platform doesn’t necessarily require firms to abandon their PMS. Instead, it introduces a flexible, data-first approach:
- Acts as a Complementary Layer
- A data intelligence platform sits between a managers’ Books of Record (BOR) such as custodians, banks, managers and existing internal data sets (perhaps held in a PMS); and their Systems of Engagement (CRM, portals, accounting platforms) serving as a data orchestration layer. It consolidates, cleans, and analyses transactional data from the BoRs, ensuring that downstream systems receive accurate and reliable data.
- Enhances existing PMS Functionality
- For firms that already have a PMS in place, an IDI platform can fill gaps, such as enabling advanced analytics or facilitating multi-custodial, multi-portfolio, multi-asset analysis. By providing additional tools and insights, the IDI platform can extend the PMS’s value without requiring a complete system replacement.
- Replacing the PMS in Certain Scenarios
- In cases where a PMS is outdated or unable to meet the firm’s growing data needs, an IDI platform integrated with best-in-class 3rd party technologies can take over entirely and provide the data foundation for agile, flexible and future-proofed operating models.
Key Advantages of an IDI Platform
Whether working alongside or replacing a PMS, IDI platforms bring transformative benefits:
- Advanced Analytics: Enables predictive insights for portfolio management at the single or multiple portfolio level, across all asset types.
- A Unified Data Warehouse: Consolidates data across custodians and asset classes for a single source of truth and delivers persistent historical analytics.
- Open Data and Interoperability: Seamlessly connects with CRM, digital portals, accounting platforms and other ‘Systems of Engagement’.
- Future-Ready Architecture: Adapts to changing business needs and technological innovations.
- Getting AI-ready: The data architecture of an IDI platform provides the foundation needed to take advantage of advances in AI.
Why Investment Data Intelligence Is the Future
As the wealth and asset management industry navigates rapid change, firms must prioritise flexibility, scalability, and innovation. An IDI platform redefines what’s possible in portfolio management by turning data into a strategic asset—whether complementing an existing PMS or providing a modern alternative integrated with best-in-class 3rd party components.
The Bottom Line
The transition from traditional PMS systems to investment data intelligence platforms represent more than just an upgrade—it’s an evolution. Firms that adopt this approach will unlock new efficiencies, improve client relationships, and future-proof their operations in an increasingly competitive landscape.
At Point, we’ve designed our Investment Data Intelligence platform to empower wealth and asset managers to thrive in this new era. With capabilities like advanced analytics, an independent IBOR, and open data sharing, we can enhance your existing systems or provide a comprehensive alternative.
