The document discusses corporate performance management solutions for investment funds. It describes solutions that enable management to implement effective investment strategies and build value. This includes facilitating a holistic view of the business, enabling realignment with market demands, and providing a framework for coordinated organizational action. The solutions center around an enterprise data warehouse that integrates data from various sources and data marts that optimize data for analysis. Executive dashboards allow analyzing performance drivers. Budgeting and planning tools simulate scenarios to refine investment plans and targets. A performance scorecard module assigns targets to investment teams. Instant messaging alerts managers to urgent market conditions. The overall system provides managers a real-time view of performance.

1. Corporate Performance
Management Solutions For
Investment Funds
In The New Global Economy
Part 2: Solutions

2. Creating Strategic Value With Corporate
Performance Management
To enable Management to draw and
implement effective Investment Strategies in
accordance with the dynamics of the
competitive marketplace and to build,
sustain and compound investment value.
To go beyond the operational use
of information in tactical day-to-
day portfolio management

3. Creating Strategic Value With Corporate
Performance Management
“What the aware
individual knows has
not yet taken shape.
If you see the subtle
and notice the
hidden when there
is no form, that is
really good. What
everyone knows is
not called wisdom.”
- Sun Tzu

4. Creating Strategic Value With Corporate
Performance Management
• Facilitate a holistic view of the business
• Enable continuous realignment of business
functions with market demands
• Provide platform for a formal framework for
coordinated action throughout the
organization
• Provide platform for the allocation of
resources according to organizational
priorities
• Enable process of identifying fundamental
shifts in environmental variables
• Provide opportunities to engage in pro-
active rather than re-active actions

5. Everyday Challenges In
Managing Corporate Performance
• Availability of relevant
information
• Accessibility to required
information
• How the information is put
together meaningfully
• The timeliness of information
• The cost-effectiveness of
information processes

6. Information Availability Through Corporate
Performance Systems
At your
fingertips

7. Information Availability Through Corporate
Performance Systems
• At your fingertips – Key Performance and
Industry Indicators
• Monitoring – status reporting, scorecards,
dashboards
• Trend Analysis – time series,
growth/change analysis
• Root Cause Analysis – ad-hoc queries,
drill-downs, drill-through
• Statistical Analysis - correlation,
regression, distribution
• Predictive Analysis – risk analysis, decision
modeling, what-if scenarios

8. Solution Architecture
The business requirements are fulfilled by an end-to-end Corporate
Performance Solution Architecture
Key components are
• Data Extraction,
Transformation and
Loading Services
• Enterprise Data Warehouse
• Planning and Budgeting
• Financial Consolidation
• Business Intelligence and
Executive Dashboards
• Performance Scorecards

9. The Enterprise Data Warehouse
• At the heart of the Corporate Performance Management System is
an Enterprise Data Warehouse (EDW) where data from the various
data sources are integrated with one another and archived.
• Data from the various source systems is channeled into the
Enterprise Data Warehouse using Extract Transform Load (ETL) tools.
The ETL tool as it is named not only extracts the relevant data from
the source systems but also performs necessary transformation
operations onto the data before it is loaded into the EDW.
• The data in the EDW is structured into a unified Data Model that
represents the entire business view of the Investment Fund. As such,
the design of the EDW is a non-trivial process that cannot be
undertaken by just any competent person with a computing
background. On the other hand, it must be designed by a person
who possess both a strong computing background as well as a
strong understanding of the business of investing and Investment
Fund Management.

10. The Enterprise Data Warehouse

11. The Enterprise Data Warehouse
The EDW is a unified Data Model that represents the entire business view of the
Investment Fund. A strong EDW design ensures that the Performance
Management System is flexible and adaptable to emerging business requirements

12. Data Marts
• Data from the EDW is automatically channeled into
a series of Data Marts (DM) each of which
represents a particular point of view in Investment
Fund management. For example, there can be a
DM for market and economic indicators, another
DM for financial and operational reported figures,
another DM for trading activities and positions held,
etc.
• In technical terms, where the EDW serves to
provide and ensure a holistic and consistent view
of data across all breadth and depth of analysis,
by contrast a DM is an optimized data structure for
multi-dimensional query operations in a specific
business area for Online Analytical Processing.

13. Metadata Repository
• A Metadata Definition Repository (MDR) maintains definitions of data held in the EDW
and the DMs. This is sometimes called the Data Dictionary.
• The MDR is instrumental is defining and delivering data according to standardized
business terms used to measure and analyze the performance of the investment fund by
various dimensions.
Measures (sample) Dimensions (sample)
• Realizable Net Asset • by Investee
Value, Company
• Net Operating Profit • by Industry Sector
After Tax • by Country of
• Economic Value Operation
Added • by Investment
• Increase/ Currency
(Decrease) in • by Investment
Market Instrument Type,
Capitalization • Etc
• Etc

14. Metadata Repository
The MDR is stores definitions and delivers data according to standardized business
terms used to measure and analyze the performance of the investment fund by
various dimensions.

15. Executive Dashboards
• Reports, dashboards and online ad-hoc performance analysis tools utilize data
from the MDR and provide the Fund Manager and his Investment Team with
the capability to analyze the driving factors that affect the performance of
their Investments Portfolios, the performance of potential or alternative
investment decisions, and to perform slice-and-dice analysis of all the
performance measures into various dimensional attributes in order to grasp
what has happened, why they happened, what is likely to happen next, and
how to handle them.

16. Executive Dashboards
Prepare Strategic Investment Plans and Monitor them against
Changes in market value of shares and derivatives
Financial performance of investee companies
Profitability and growth of investment portfolios
Cost of funds and financial obligations
Industry outlook and directions

17. Executive Dashboards
Prepare Strategic Investment Plans and Monitor them against
Changes in market value of shares and derivatives
Financial performance of investee companies
Profitability and growth of investment portfolios
Cost of funds and financial obligations
Industry outlook and directions

18. Executive Dashboards
Prepare Strategic Investment Plans and Monitor them against
Changes in market value of shares and derivatives
Financial performance of investee companies
Profitability and growth of investment portfolios
Cost of funds and financial obligations
Industry outlook and directions

19. Budgeting and Planning
• The Budgeting and Planning (BP) component of the Corporate Performance
Management System is used to perform Financial Simulations under various scenarios
and from there to refine and develop Financial Budgets, Investment Plans and set
Performance Targets.
• The BP module provides a workflow framework for top-down (where management sets
business assumptions and expected overall achievements) and bottom-up (where
individuals, teams and departmental heads submit their operating budgets for upwards
approval) budgeting processes to meet in the middle.

20. Budgeting and Planning
Sample Performance Metrics that can be planned and targeted for
Subject Measures Dimensions Hierarchies
Profitability Return on Equity By Investee Reporting Period
Net Profit Margin By Reporting Period (Year/ Qtr/ Mth)
EBIT By Actuality
EBITDA By Instrument Type Account/ Sub-
Liquidity/ Current Ratio By Listing Status Account
Working Quick Ratio By Investment Team
Capital Cash Ratio By Risk Segment Industrial Sector/
By Country/ Sub-sector
Capital Gearing Ratio Currency
Structure/ Interest Cover Investment
Solvency Portfolio/ Sub-
Analysis Portfolio
Valuation PE Ratio
Dividend Yield

21. Financial Consolidation
•Financial Reports from Investee Companies is processed by the Financial
Consolidation Module to produce the overall Consolidated Financial Results for the
Investment Fund after taking into account the level of controlling stake, Minority
Interests, Inter-Company Transactions, Currency Conversion issues, etc.
•Financial Consolidation can be carried out to give multiple Investment Perspectives.
For example, apart from Financial Consolidation along legal ownership lines,
Financial Consolidation can also be conducted to present the Investment Fund’s
Risk/Reward exposure by Types of Industries and Lines of Businesses, by Geographical
Regions and Political Sovereignty, etc.

22. Financial Consolidation

23. Performance Scorecard
• Performance measures of the Investment Fund are further
incorporated into a Performance Scorecard (PS) module where
responsibilities for achieving performance targets are assigned to
respective Investment Teams and individuals.
• Here, collective responsibilities such as departmental targets can
be further cascaded down into team responsibilities and ultimately
into individual responsibilities.
• Various methodologies may be applied into the PS, a popular one
being the Robert & Kaplan's Balanced Scorecard methodology.
However, the Investment Fund can embrace other suitable
methodology, or modify the Balanced Scorecard methodology to
suit its particular management needs
• The PS application is an especially ideal solution for matrix
organizations where a particular analyst or trader having an
expertise in a particular industry participates in managing more
than one Investment Portfolio and needs to be assessed
individually as well as collectively a member of the various portfolio
Investment Teams.

24. Performance Scorecard

25. Performance Scorecard

26. Instant Messaging
• Fund Managers require immediate alerting to urgent conditions arising in the market
• For example, the Fund Manager may wish to be alerted when his aggregated exposure
to a particular industry or currency has exceeded a certain threshold, or where the
exchange rate of a particular currency has dropped or increased beyond a certain
amount, or the share prices of a listed stock has hit a certain sell or buy target price.
• A Business Activity Monitoring Infrastructure combined with an Alert Management and
Mobile Reporting subsystem delivers the solution.
• Alerts may be transmitted via multiple modes of communication including emails
(receivable via PDA or Blackberry) and SMS messages.

27. Technology Partner
• Financial Markets have grown in complexity due to new Corporate
Governance and Compliance Rules, De-Regulation and
Globalization, and the invention of new and exotic Investing
Instruments
• As such, the final but not the least important component required
by an Investment Fund in the implementation of a sound
Corporate Performance Management System is a technology
partner who understands very closely the business of investing.
• The selection of a technology partner should be carried out
meticulously and the Investment Manager should not be deluded
by the size or the past reputation of the technology partner, but he
should evaluate them by the quality, experience and knowledge
of current market conditions possessed by specific individuals who
are assigned to develop his system.

28. Conclusion
• Managing funds in the volatile, sophisticated and fast-paced
markets of today requires the Investment Fund Manager to have a
real-time, 360-degree view of situations 24-hours a day, 365 days a
year, no matter where he is. The Corporate Performance
Management System delivers this requirement.
• In this presentation, we have described the business requirements
of the vigilant and astute Fund Manager in facing rising challenges
in today’s Financial Markets, and the solution how a Corporate
Performance Management System can be implemented to solve
the Fund Manager’s needs.

29. Create Strategic Value For Yourself
Now
“The one with many strategic factors in his favor wins,
the one with few strategic factors lose… Observing the
matter in this way, I can foretell who will win and who will
lose.”
- Sun Tzu

30. Thank You