• J.P. Morgan report reveals data fragmentation and illiquidity are rising concerns for institutional investors
• Traditional accounting and manual reconciliation no longer suffice for complex asset mixes
• Fusion platform offers centralized data analytics for performance, risk, and liquidity management
• Fusion integrates with FactSet and MSCI for enhanced benchmarking and stress testing
• Swing pricing is key to managing transaction costs and protecting shareholder equity
• Liquidity simulation tools help avoid dilution and improve redemption pricing accuracy
• Institutional investors must shift from reactive to proactive decision-making
• Private assets require new approaches to transparency and reporting
• Cloud-based solutions provide scalable, integrated analytics environments
• Advanced tools support regulatory compliance and long-term alpha generation

As institutional portfolios grow in scale and complexity, the old methods of managing risk and performance are showing their limits.

A new J.P. Morgan report reveals that asset managers and owners navigating a blend of public and private holdings are contending with fragmented data, less liquidity, and rising pressure to outperform benchmarks – all while keeping their operations efficient and investor-focused.

The report identifies a critical shift in the way institutional investors must approach portfolio construction and oversight.

With private assets forming a growing slice of allocations, traditional fund accounting methods – often reliant on manual reconciliation and decentralized systems – are no longer adequate.

Instead, firms are being pushed toward robust front-office analytics and predictive liquidity tools that can keep pace with modern demands.

Among the biggest challenges is the need for actionable, standardized data. Investors now require granular, real-time insights that can inform proactive decisions rather than reactive responses.

For asset managers, this often means building internal tools to extract insights from raw data. For asset owners, the demand is often for fully formed board-level reporting.

Either way, the emphasis is on clean, integrated dashboards that support tactical decision-making while feeding long-term strategy.

J.P. Morgan naturally points to its own Fusion platform as one response to this need. The cloud-native solution centralizes data across positions, transactions, and providers – internal and external – into a normalized model that supports end-to-end performance, risk, and liquidity analysis. 

Liquidity management is also coming under sharper scrutiny. The report notes that during periods of market stress, institutional investors often need to exit positions quickly.

But with private markets offering less flexibility and higher costs, calculating the impact of such moves has become essential. Swing pricing is highlighted as a crucial tool in this regard.

In an environment where regulators are demanding greater transparency and investors expect more precision, such capabilities offer not only risk mitigation but also a competitive edge.

Without them, fund performance may suffer, not due to poor asset selection, but because of operational inefficiency and uneven cost allocation.

J.P. Morgan’s findings suggest that institutional investors should treat data and liquidity infrastructure as strategic priorities, not operational footnotes.

Whether the goal is to outperform, match benchmarks, or simply fulfill obligations in volatile markets, the way forward lies in collaboration, technology integration, and readiness to act ahead of the curve.