Back-office outsourcing solutions for a portfolio manager

Abstract

This report seeks to understand the processes that take place in an Asset Management Company (portfolio manager) offering Portfolio management services (PMS) to HNls and corporates, and identify which of these processes Deutsche Bank can offer to undertake. The idea is that a PMS should only perform those activities that are'core':1. Managing sales and client relationships2. Managing client portfolios - selecting the best combination of securities keeping in mind the risk profile of the client The advantage of outsourcing non-core activities is that the PMS gains in terms of the specialization and scale offered by DB. This also turns out to be a cost-effective solution, besides transferring operational risks to service providers. To DB, provision of these services offers a steady source of revenue, adding to the top-line as well as to profits. The study comes to the conclusion that besides Fund Accounting and Custody, other services such as Registrar and Transfer Agency (RTA) functions and information services regarding broker empanelment can also be offered by DB.