Demystifying the Data Collection and Handling Process for Allocators

The data collection and handling process is a critical element in providing a valuable front-to-back office solution that simplifies the overall investment management process for clients.

From raw data to a rich array of transparent information, comprehensive data collection and handling creates a total investment solution. The web-based platform focuses on collecting accurate and reliable financial data spanning the entire investment management process. The system collects data from valuable contributors, your administrators and custodians, your active and research fund managers, and 3rd party data sources, and then funnels the data into a secure data platform.

Specifically, a data platform, owned by your firm, maintained by the service provider Vidrio. This process is what differentiates a technology service provider from software-based offerings. Each database instance and subsequent data handling process is tailored to your specific needs.

Beginning with research support, first filtering and screening through hundreds of funds and fund attributes to find managers that meet your requirements. Throughout the research process, the interactive CRM allows you to drag and drop emails, update manager profile bios, insert meetings, add client interactions, and enter any additional notes needed for that manager. All performance, exposure, AUM, and other essential data numbers can serve as data input into the system. This collection of information is available for viewing, monitoring, updating, and otherwise leveraging through the platform.

Choose to leverage a team of experts, at any point, to help load:

  • Manager Documentation
  • Performance Estimates and Finals
  • Month End Holdings Files that include risk, exposure, and performance attributes

More specifically:


Next, performance monitoring is the cornerstone of the analytic services layer. Experienced professionals and software custom integrate the database performance feeds with the fund, series, and share class-specific performance flows that have to be collected on a fund-by-fund basis.

“The most essential part of my team’s work revolves around the performance metric. This key figure must be on time and accurate. Because clients are constantly checking the performance to keep track of how their portfolio is doing, this is a very vital number.”

-Vidrio Manager Monitoring Team Lead

The operations team receives the statement and investing details relating to the end of the month performance number for the different fund classes. The precise calculations based on the manager’s investments are essential. Grunt work is required to root out where and why differences occur between performance inputs. An experienced ops team processes and reconciles month-end finals to ensure the numbers received from admin and custodian sources add up. As a result, you can be confident that your portfolio information is accurate and current.

The portfolio position management team provides the next essential component of the data handling process. With agreement from our client and the fund manager, administrators send month-end security holdings file through a secure FTP site for analysis. Our system gathers and organizes these holdings files to enable exposure, risk, and performance attribution analysis. Exposure analysis is performed by Vidrio using a proprietary security master that enriches the holdings file with sector, geography, and asset class attributes as well as adding any terms and conditions needed for risk processing. We then send this file to our partner, Axioma, who runs a series of risk calculations that incorporate both factor sensitivities and Monte Carlo based risk profiles. Our team will do quality checks and search for any outlying errors in this risk profile document. This quality checked info is then entered into the client’s platform.

“The data we gather and process is very crucial to a client. We devote a lot of time and effort in checking the data we receive from manager’s admin, processing it with our methodology and tools, double checking and ensuring the risk profiles we receive are accurate, and finally making sure the data is displayed correctly.”

-Vidrio Quantitative Researcher

Lastly, the processed data gets integrated with databases, including Morningstar, HFR, Eureka Private Equity and any other additional databases you require. These databases support bulk data collection and updating information, including performance, manager profiles and AUM, and asset class benchmarks. While database integrations are an automated process, they are reviewed independently for quality assurance.

Throughout the process, industry-leading security protocols guarantee the protection of your vital information. The data center is architectured to ensure end-to-end safety and continuous access to any service or feature. Data is preserved in perpetuity and presented for time series analysis, so you can track patterns and identify problems or areas of concern. Having the ability to trace these problems to the source in one system is what separates Vidrio from the competition.

Vidrio guarantees top of the line practices of service and automation to ensure our system doesn’t fail.

“Vidrio is an all-encompassing software that can be tailored to the client’s exact needs. We pride ourselves on being able to provide all the moving parts to ensure all data is accurate, organized, and secure.”

-Sean Budha, Vidrio Portfolio Monitoring Specialist

Automation, along with staffing assistance, enables the collection of all data points streamlined from multiple sources to an all-in-one software system solution. While many different departments contribute to the data handling process, each team is providing a different data aspect to your platform, and all data is fully available to everyone who needs it, a critical attribute to having a complete view of operations. This ever-changing approach to asset allocation enables the ability for you to make smarter decisions on your investments, funds, and the future.

We invite you to explore how Vidrio’s coverage is different and can support you with a data service to meet your objectives. Contact us to set up your demo of this all-in-one approach to asset allocation.

Vidrio Team
Written by

Vidrio Team

The Vidrio team is uniquely positioned to help allocators and LPs to navigate portfolio risks in today’s complex, interconnected world.

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