Portfolio managers today must juggle evolving risk, performance, and strategic challenges – often with fewer resources than before.
To stay competitive, more portfolio managers are turning to technology.
Modern portfolio management software gives managers the tools they need to transform the way portfolios are built, optimized, and safeguarded, helping managers navigate uncertainty and drive better results.
Doing More with Less: The 5 Biggest Challenges in Modern Portfolio Management
From shifting client expectations to increasing regulatory demands, portfolio managers face mounting pressures on all fronts—all while trying to deliver strong returns with fewer resources.
Here are the five biggest challenges portfolio managers must navigate:
- Customizing Portfolios While Justifying Fees: Investors demand tailored portfolios that align with their specific objectives, all while expecting clear justification for management fees. Balancing customization, risk tolerance, and performance expectations is critical to retaining client trust and demonstrating value.
- Increasing Regulatory and Compliance Pressures: As regulatory oversight continues to tighten, managers must stay ahead of evolving rules on fiduciary standards, ESG disclosures, and cross-border compliance. Failure to do so can lead to reputational and financial risks.
- Managing Risk in an Unpredictable Market: Traditional risk models are being challenged by economic uncertainty and shifting asset correlations. Without advanced risk management tools, portfolio managers risk potential losses, regulatory scrutiny, and missed opportunities.
- Disconnected Trading and Portfolio Management Workflows: Siloed systems create inefficiencies, slow decision-making, and increase operational risks. A seamless, integrated approach to portfolio and trade management is essential for success.
- Data Overload and Operational Inefficiencies: With a flood of traditional and alternative data sources, extracting actionable insights is more complex than ever. Additionally, reliance on multiple systems creates workflow friction and data discrepancies, slowing down critical investment decisions.
Breaking Down Silos: How Integrated Technology is Transforming Portfolio Management
Just as markets have evolved, so has portfolio management technology. The fragmented systems of the past are giving way to a modern, integrated approach—one that streamlines the entire investment process.
By breaking down silos, today’s investment technology supports every stage of portfolio management—from idea generation and modeling to execution, compliance, and reporting:
- Portfolio Construction and Modeling
Advanced modeling tools enable managers to optimize asset allocation, conduct “what-if” analyses, and facilitate rebalance simulations across multiple asset classes. - Streamlined Order and Execution Management
Modern platforms integrate order management and execution, reducing manual processes and improving efficiency. Seamless connectivity with liquidity pools helps firms trade efficiently. - Real-Time Risk Management and Compliance Tools
Technology provides real-time insights into portfolio exposure, liquidity risks, and compliance violations, enabling proactive risk mitigation and adherence to regulatory standards. - Performance Tracking and Data Integration
Holistic, real-time views of NAV, P&L, transactions, and positions empower managers to make informed decisions. Connected data across front and back offices ensures accurate reporting and enhanced client transparency. - Decision Support for Portfolio Managers
By integrating multiple data sources, modern investment platforms provide powerful analytics—helping managers track trends, analyze exposures, and make data-driven investment decisions.
Essential Tools for Empowering the Future of Portfolio Management
SS&C’s portfolio management solutions equip managers with the tools they need to enhance efficiency, streamline workflows, and make smarter investment decisions.
By connecting once siloed systems and providing real-time insights, these solutions help managers navigate today’s complex market landscape with confidence.
For a deeper dive into the challenges of modern portfolio management—and how technology is transforming the way managers optimize performance and mitigate risk—download our latest report: "From Idea to Execution: How Modern Portfolio Management Technology Drives Investment Success."
Ready to see how SS&C technology can elevate your investment strategy? Learn more about our portfolio management solution or contact us for more information.
