Top three trends in investment management

Investors and portfolio managers have three priorities before committing capital: cycle times, transparency and risk analysis. We check in with Yardi’s Robert Teel to unpack the trends.

“Investors and institutional investment management boards – which often oversee multi-million dollar funds – are asking for more intelligent business software solutions to ensure that their investments are monitored wisely,” says Teel, Yardi’s senior vice president of global solutions.

 

Cutting the cycle time

“The time between the end of the quarter and the production of investors’ returns and reports is crunch time,” Teel says.

“Shortening that cycle from weeks to days is a crucial component of keeping investors happy.”

Banks and investors are now asking for more frequent valuations of real property, which can be costly and time-consuming. Investors are also looking for forecasts, so they can anticipate the value of their investment in the years ahead.

“Yardi’s solutions create full portfolio valuations, in an automated, accurate and repeatable way, quarter after quarter, or any frequency desired,” Teel adds.

 

Transparency through data-rich reports

Investors and investment boards now want more detail about how their commercial investment properties are doing, down to the level of tenant health.

“They aren’t satisfied with the pretty pictures of the assets traditionally included in quarterly reports.

“They want to drill down to find outstanding receivables and other property-specific information,” Teel explains, adding that the Yardi Investor Portal provides a technology tool for frequently-published, data rich reports.

 

Risk analysis

“Successful investment management means monitoring a portfolio closely for potential trouble spots.

“Portfolio managers can choose the attributes they’ll monitor to keep close tabs on portfolio assets.

“Producing the best possible business intelligence platform for risk management is one of the goals of Yardi Orion, which gives instant access to investment data.”

The days of managing clients’ portfolios from an Excel spreadsheet are over, Teel adds.

“Investment managers need to account for accounting controls, risk controls, operational controls with a smart technology choice. You will not get institutional funding if you are running on an Excel spreadsheet.”

Find out why Yardi was named in Forbes Cloud 100 for the second year in a row earlier in 2017. Visit www.yardi.com.au