Evaluating Performance Attribution (PA) solutions, including Net Performance calculations, is more than just a compliance checkbox; it’s a strategic opportunity to drive better decision-making and outcomes for your investment team. But with a crowded field of tools and platforms, how do you choose the right solution?
Let’s explore why EDS is more than just a PA solution—it’s a comprehensive decision-making platform designed to align seamlessly with your strategic vision. Unlike traditional PA tools focused solely on reporting, EDS is built for scalability, flexibility, and delivering enterprise-wide value, empowering investment teams to make more informed decisions and drive better outcomes.
Overcoming the Limitations of Traditional PA Tools
In-house tools like Excel and single-point PA applications may suffice for small-scale operations, but they often fall short in creating actionable insights across an entire organization. Modern PA platforms, like EDS, offer:
- Ease of Use: User-friendly interfaces that require minimal onboarding.
- Immediate Impact: From pre-trade analytics to post-trade insights, modern PA platforms empower continuous improvement.
- Cost Effective: One well-informed decision can justify the investment.
Why Performance Attribution Matters
Performance Attribution isn’t just about reporting past performance—it’s about understanding how and why decisions impact results. Whether analyzing pre-trade data like price targets and ROI forecasts or post-trade metrics such as performance by analyst, geography, or factor, the right PA tool transforms data into actionable intelligence.
Ken Griffin’s core tenet applies to funds of all sizes: efficient assimilation, processing, and reaction time are critical for success. By embracing a robust PA solution, you gain the insights needed to:
- Continuously improve decision-making.
- Achieve better portfolio performance.
- Ultimately, grow AUM.
How EDS Supports Net Performance Reporting
Responding to SEC Guidelines
In May 2021, the SEC introduced new rules affecting marketing practices, which were clarified in January 2023. These guidelines highlighted the importance of consistent and transparent client reporting, including net performance metrics. EDS has partnered with clients to implement automated reporting updates that align with these requirements.
EDS’s Net Attribution Solutions
What sets EDS apart is our ability to calculate daily net performance, enabling unparalleled precision and flexibility. Key features include:
- Custom Tagging: Report net attribution by sector, market cap, geography, or custom tags.
- Comprehensive Timeframes: Generate reports for any period, including DTD, WTD, MTD, YTD, and multi-year intervals.
- Fully Integrated Platform: EDS ingests your full portfolio history, ensuring seamless analysis and reporting.
Automating Investor Reporting
EDS takes investor reporting to the next level with fully automated outputs, including both gross and net attribution. Reports are tailored to your exact specifications, down to logos, color schemes, footnotes, and disclaimers. Prefer a different methodology? EDS can implement custom business logic to meet your unique needs.
Core Tenets of Performance Attribution
1. Flexible Visualization Environment
Real-time, dynamic assimilation of performance data empowers better decision-making.
2. Seamless Integration Across Workflows
EDS connects Performance Attribution with other critical workflows, including Idea Generation, Portfolio Construction, Risk Management, and Research Management.
A Strong Implementation Process and Ongoing Support
Implementation Expertise
Before you commit, EDS onboards your content and workflows to ensure you see how the platform fits your needs. Our team, made up of former buy-side professionals, understands your challenges firsthand.
Dedicated Support
Funds grow, challenges arise, and needs evolve. EDS delivers comprehensive support, including:
- A dedicated customer success representative.
- Quantitative staff with buy-side expertise.
- Software professionals who ensure you’re equipped for today and tomorrow.
Tailored Technology Integration
EDS is not a one-size-fits-all solution. We work with your team to customize workflows, dashboards, and reporting to align with your unique processes and goals.
The Bottom Line
Choosing the right Performance Attribution solution is a decision that impacts your entire investment process. EDS offers more than just compliance—it delivers continuous improvement, better decision-making, and stronger portfolio outcomes.
View our Performance Methodology Factsheet. If you prefer a different methodology, EDS can create custom business logic to support your needs.
Ready to see EDS in action? Contact us for a customized demo today.
