When it comes to supporting client reporting teams, FactSet keeps its options open, says P. McKay Marschalk Jr. in an FTF News Q&A
P. McKay Marschalk Jr.
(P. McKay Marschalk Jr., CFA, vice president, director, reporting and distribution product management at FactSet, took time out of his busy schedule to answer questions about current data demands, outsourcing vs. internal control, third-party databases and questionnaires, and FactSet’s embrace of a generative A.I. commentary solution. The through-line for all of these concerns is maintaining flexibility when meeting the demands of client reporting, he says.)
Q: How is FactSet addressing the new data demands for 2025?
A: The biggest challenge many teams face is preparing and integrating clean data for reporting purposes, both structured and unstructured. Access to timely and accurate data is crucial for smooth period-end processes and to keep pace with an ever-evolving reporting landscape. New tools like APIs [application programming interfaces] and cloud data warehouses bring data closer to reporting teams. We’re focused on building new applications that empower business users to access data more easily and provide more transparency into the entire process.
Q: Why do you think FactSet won the Best Client Reporting Solution award for 2024?
A: When it comes to reporting, FactSet’s biggest selling point is our flexibility. We provide several operating models that meet various client needs. We can manage the end-to-end reporting process for our clients or provide them with the tools to do it themselves. Clients can provide their own data to FactSet in a variety of ways, or they can leverage our integrated market data and industry-leading portfolio analytics engines. Outputs can be branded for PDF/portal reporting, or delivered via an API, cloud, or flat file. We meet our clients where they are on the build versus buy spectrum and provide the solutions and expertise to solve their biggest challenges.
Q: A key client reporting trend revolves around the need for outsourcing and internal control. Why are institutional asset managers and similar firms reevaluating their operating models? How does a firm decide which aspects of client reporting and communications to keep and which parts to shift to a managed services provider?
A: Clients are evaluating their core business services, or “secret sauce,” more than ever, and what tasks are better served through partnerships with trusted experts. This takes many forms in the client reporting world, such as collaborating with a vendor on data reconciliation, or outsourcing the creation and maintenance of lower value-add reports like factsheets or regulatory reports. The benefits to our clients are clear: it allows them to focus on areas of differentiation, reducing operational risk, and lowering total cost of ownership.
Q: How important is customization to successful client reporting and communication? Why can’t a ‘one-size-fits-all’ solution work?
A: Traditionally, there has been a trade-off between scalable, generic high-volume reporting and manual, more error-prone customized communication. With FactSet’s reporting solutions, asset managers get the best of both worlds. Our automation tools with flexible business logic offer more tailored and personalized communication, and they do so in a scalable and secure fashion that meets clients’ SLAs [service level agreements].
Q: Investment Managers need to populate third-party and consultant databases as a way to maximize interest in the firm. What are some of the challenges and pitfalls they face doing this quarterly?
A: Populating third-party databases and questionnaires is something every asset manager needs to do to maintain relationships and drive sales and assets under management (AUM). We acknowledge it’s a tedious and error-prone task. Not only do firms need to generate various data points and maintain all narratives, but they also need to ensure they are accurately loaded to dozens of databases in a timely fashion. This process can take weeks to complete while combating discrepancies across databases and marketing materials.
FactSet Fund Marketing streamlines the entire process by automatically generating analytics, providing views to validate/approve results, and dynamically populating multiple databases.
Q: Artificial intelligence (A.I.) technologies are set to disrupt the industry. How is FactSet responding and utilizing this new tool in client reporting?
A: The process of creating, storing, editing, approving, and integrating commentary into the reporting workflow traditionally causes delays and missed deadlines. FactSet solves this challenge with its new end-to-end generative A.I. (GenA.I.) commentary solution. The process begins by integrating enriched, validated client holdings and trade data with FactSet’s advanced calculation engines and rich market data to create industry-leading portfolio analytics.
Now, clients can use GenA.I. to create unique commentary output that combines security news, portfolio positioning, and macro benchmark drivers, all with source links. Users save commentary in FactSet’s centralized research management tool, Internal Research Notes (IRN), which offers a configurable rich text editor for collaborative editing and version tracking, redline markups, and audit logs.
Approved commentary is integrated into downstream reporting and distribution tools with further configurable validation/approval steps. The entire process is streamlined within FactSet’s Workflow Manager, which features intuitive flow charts, dashboard views, task action windows, and detailed audit logs, with the ability to configure each step with assignees and notifications.
The release of a full GenA.I. commentary workflow solution simplifies a time-consuming, tedious task that often creates bottlenecks in reporting. FactSet is uniquely positioned to combine portfolio and market data with industry-leading portfolio analytics, cutting-edge GenA.I. technology, a workflow-oriented commentary editing and approval process, and best-in-class tools for report creation and distribution.
