How can boutique asset managers defend themselves against the current, dominant risks to their business? How can boutiques asset managers overcome compliance and operational hurdles? Boutiques must demonstrate operational excellence and compliance to encourage investors, without incurring excessive cost or complexity. They need mastery over data and automation of the front office. Early adopters who develop a strategic approach to handling change, reduce the pressure associated with regulation. In a recent survey by TABB Group, half of all participants indicated they are looking to technology providers to assist more with compliance obligations. A recent survey by Chartis found data management gaining in importance with 91 percent of respondents rated data quality as crucial. How can you streamline operations to reduce costs, ensure good data management for greater insight, and enhance risk management to meet investor expectations?

1. Boutique asset managers:
Protect your business and
reputation against risks

2. 2
Investor expectations – demand for greater institutional grade controls
and high standards of conduct
3
Pressure on fees – increasing regulations and investor requirements,
driving operational efficiencies to scale internally
1
A highly complex web of regulatory challenges – creating
increased compliance costs and complexity for product distribution
Demands for greater transparency and frequency from regulatory
and client reporting
4
Boutique asset managers face…

3. Industry research reveals
Investment and risk
professionals say their
risk systems are
outdated
50%
Boutique asset
managers see
compliance as the top
concern
48%
Boutique asset
managers now see
operational efficiency
as second only to
stock picking
51%
Chartis, Key Trends in Buy Side Risk Management, 2015
TABB Group, Adapting for the Future: Boutique Asset Management Post-2017, 2015

4. How can boutique asset managers
defend themselves against
current risks?

5. 1.
Demonstrate
control over data
and risk

6. Data quality
91%
Chartis, Key Trends in Buy Side Risk Management, 2015
TABB Group, Adapting for the Future: Boutique Asset Management Post-2017, 2015
What are the crucial elements of data management?
Data management gains in importance
Risk data aggregation
87%
Data coverage
81%

7. Boutiques must demonstrate control over data
• Mastery over data.
• Automation of the front office.
• Institutional standards of data management, control, accountability and security.
• Streamlined, scalable operations.
7TABB Group, Adapting for the Future: Boutique Asset Management Post-2017, 2015

8. Better transparency
and interactivity of risk
analytics for portfolio
managers
90%
Chartis, Key Trends in Buy Side Risk Management, 2015
What are the top three areas of concern for buy-side firms, and where would
firms benefit most?
Boutique asset managers must protect against risk
Improved data
granularity and
on-demand risk
reporting
87%
Multi-asset class
risk systems
79%

9. How should boutiques prioritize risk?
• 89% of buy-side firm respondents view risk management as an integral and crucial
component of investment strategy.
• Transparency, interactivity and improved granularity are considered to be important to
managing risk.
• 50% of portfolio managers say their priority is to provide greater transparency and
interactivity with risk analytics.
9Chartis, Key Trends in Buy Side Risk Management, 2015

10. There is a large disparity between participants’ understanding of the
importance of risk and the reality of day-to-day execution within their firms
What is the reality?
10
60%
57%
32%
32%
18%
29%
33%
29%
24%
26%
11%
10%
39%
44%
56%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
An integral and critical component of
investment strategy
An aspect of investment strategy and
portfolio management (driven by fund
managers and analysts)
A middle office focused activity largely in response to
investor requirements
A middle office focused activity largely in response to
regulatory requirements
A reporting activity largely driven by outsourcers or internal
back office with few direct linkages to investment strategy
or portfolio management
True across the firm
True for specific investment strategies
Would not accurately describe the role of risk management in any part of the firm
Chartis, Key Trends in Buy Side Risk Management, 2015

11. 2.
Address regulatory
demands efficiently
and effectively

12. 12
Regulation has soared to being the
top concern for boutiques,
cited by 68% of managers in 2015
compared to just 17% in 2013.
TABB Group, Adapting for the Future: Boutique Asset Management Post-2017, 2015

13. But it can be turned into a competitive advantage
Current technology is an obstacle for some
13
have two or more
risk systems and say
siloed systems
can be a challenge
67%
cite technology as
aiding their ability to
expand both geography
and product
58%
are looking to
technology providers
for more assistance
with compliance
obligations
50%
Chartis, Key Trends in Buy Side Risk Management, 2015
TABB Group, Adapting for the Future: Boutique Asset Management Post-2017, 2015

14. 3.
Find new ways of
working

15. Are you getting the whole story?
Boutiques must demonstrate operational excellence and compliance to encourage
investors – without incurring excessive cost or complexity
They need:
• A single warehouse for storing, viewing, consuming and reporting on data – which creates
a full picture of risk and performance.
• Efficient, transparent processes and a robust technology infrastructure.
• Holistic views with visualization and intelligent interrogation through streaming analytics to
provide a unique source of intelligence.
Increase institutional credibility and investor confidence for longer-term investment. Find out
more by visiting our website.
15TABB Group, Adapting for the Future: Boutique Asset Management Post-2017, 2015