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Optimising Performance Fee Calculations: Automation for Accuracy & Efficiency

Matt Hardy 31 January, 2025

CASE STUDY ASSET MANAGEMENT AUTOMATION

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QuantSpark worked with a leading Asset Management Firm to automate performance fee calculations, helping them reduce errors, save time, and improve revenue forecasting, enhancing both efficiency and client service.

Executive Summary

The Asset Management firm manages funds with a goal of outperforming the benchmark index by 3%+.

Inefficient calculation of Performance Fee charged to client relies on third-party vendors, internal verification, and manual Excel calculations.

Complex fund nuances lead to time and resource-intensive reconciliation, affecting future revenue forecasting.

The Solution

Streamlined fee calculation through automated client performance fee processes.

Automated Data Ingestion: The tool automates data ingestion from multiple sources for performance fee calculations.
Streamlined Fee Calculation: Calculates fees and generates comprehensive reports, including discrepancies from third-party data and interim calculations to facilitate reconciliation.
Enhanced Fee Forecasting: Creates accurate reports for various funds, facilitating easy fee forecasting, saving time for employees, and enhancing service efficiency for clients.

Case study diagram

Impact

15% Reduction in discrepancies and minimising errors in fee calculations.
30% Reduction in calculation time driven by automated data ingestion and calculation processes
Improved forecasting suite to enable advanced revenue strategy.