Waters Rankings 2024: Best performance measurement and attribution system provider—FactSet

Overview

FactSet Performance Solutions (FPS) is FactSet’s official performance application, offering basis-point performance returns and multi-asset class attribution across asset classes, investment strategies and firm types. Built on the foundation of FactSet’s Portfolio Analysis (PA) analytics platform for attribution, risk, and characteristics analysis, FPS is an integrated component of FactSet’s middle-office solutions suite that unifies the portfolio lifecycle to help users streamline implementations, enhance reporting precision, and improve operational efficiency.

The solution  

FPS focuses on the three main pillars for the production of performance results. First, it is inherently “distrustful” of client portfolio data before it can be tested, validated, and enriched. Perfect portfolio data yields basis-point perfect performance results. Second, embedded market and index data remove the integration burden and cost of supporting global investment mandates. And third, FPS unifies the middle-office production of official performance and attribution results with front-office ad-hoc demands.

Secret sauce  

FPS’ unique capabilities include:

• The unification of official performance production and ad-hoc attribution analysis in a single solution that streamlines implementation and enhances operational efficiency
• Deployment on FactSet’s software-as-a-service (SaaS) platform, which removes the technical burden and support of legacy applications
• FactSet’s embedded market and index data, which can reduce vendor costs and decrease time to market for new investor onboarding and product launches
• FactSet’s Portfolio Services teams, which support clients’ captive production and analysis operational teams

Recent milestones

FactSet recently:

• Integrated FPS’ approved results into PA, resulting in a tool that combines curated and approved security-level results with dynamic security classification, benchmark, and market data to instantly calculate portfolio analytics data
• Created basis-point perfect performance returns through the integration of B-One’s returns calculation methodology into FactSet
• Launched end-to-end production automation through the development of impact analysis, a data-aware restatement process to ensure performance, attribution and characteristics remain consistent as portfolio data changes

Future objectives

FactSet will focus on:

• Architectural improvements to scale processing time, introduce account prioritization, and removed UI burdens on clients’ accounts
• Aligning its clients’ use of B-One and Core FactSet by expanding the data transition process, ensuring B-One calculated results are available for reporting and distribution in PA
• Continued development of official performance functionality through continued Global Investment Performance Standards (GIPS) enhancements and the introduction of total return calculation capabilities to FPS