Some firms do not have an internal Performance Manager as a part of their organizational structure. In all of my years of experience these types of organizational structures do not work efficiently and effectively for there is no one person responsible for the Performance data. Without an overarching Performance Manager to be responsible for all aspects of firm-wide performance reporting, the firm puts itself at a disadvantage, as well as at an operational risk.
Some of the ‘hands-on’ services that can be provided revolve around the following areas of expertise:
The inherent qualities of a Performance Manager require one to be very detailed, methodical and extremely organized. As Performance systems calculate returns in the same manner, it becomes a matter of detailing out the Inputs that are needed so as to ensure proper calculation of the Outputs.
Performance Manager's primary functions are:
1. Determine all data inputs that are needed to ensure accurate performance calculations
2. Ensure that those data inputs are correctly entered into the system
3. Ensure that the portfolio accounting system settings are properly identified/set for the data input
4. Ensure that all inputs are processed in the correct order
5. The system calculates the performance returns only after all items are processed
In essence, if all 5 of these steps are followed, the system should generate an accurate performance return. In order to effectively track all of the data inputs, a Checklist is needed for accountability. The following pages provide an example of a Checklist format that can be followed and implemented, along with some of the duties that a Performance Manager would be responsible for. Each item is detailed out, and processed in the order to which it appears.
This Checklist was created from multiple client checklists over time, and is not an all-inclusive list of every function that exists at your firm. However, this checklist can provide you with a working framework to facilitate the organization that is needed around the Performance Manager function. Once utilized, this Checklist format can be utilized for monthly, quarterly and even yearly processes.
Temporary 'fill in' help due to employee turnover and/or assistance with developing the internal Performance Manager role.
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