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Choosing a Benchmark Data Provider [INFOGRAPHIC]

Risk, Performance, and Reporting

By FactSet Insight  |  March 4, 2020

Managing the complex world of index data is a growing challenge for investment management firms. Integrating data correctly means considering the different aspects (and headaches) of a fragmented market.

Today, many firms are looking to outsource their benchmark data management. To determine the right benchmark provider, FactSet has broken out essential vendor criteria into the following themes:

Broad Data Sets

  • Equity, fixed income, and alternative benchmarks
  • Security reference, core content, and derived analytics
  • Capability for blended, hedged, and customized benchmarks

Experience Aggregating and Integrating Content

  • Full coverage across asset classes and types
  • Experience and expertise in onboarding new data and managing vendor relationships
  • Symbology mapping
  • Flexible file formats
  • Corporate actions handling
  • Calculation methodology

Technology That Can Reduce Operations Costs

  • Consolidated source of data
  • Consistent symbology
  • Normalized format across vendors
  • Open and flexible delivery technologies
  • Data management for rebalances and revisions
  • Potential to scale for evolving needs

Top-Level Performance Reporting

  • Index-level characteristics
  • Top-down aggregate data
  • Index-, sector-, and country-level returns

Internal and External Performance Reporting

  • Constituent- and index-level returns across time periods, currencies, and classification schemes
  • Cross-sectional breakdown of benchmarks
  • Risk decomposition at every level
  • Turnkey integration and experience working with leading performance systems
  • Integration with other data sources

Pre-Trade Valuation

  • Benchmark weights and characteristics
  • Portfolio- and firm-level constraints
  • Integrated order management systems for pre-trade analysis
  • Integration with other data sources

Content Beyond Benchmarks

  • Security- and entity-level content and symbology
  • Security-level third-party content
  • FactSet-calculated analytics to supplement vendor data
  • Connectivity to over two dozen other content sets

There-When-You-Need-It Support

  • Managed and collaborative implementation of the service
  • Live monitoring of production status
  • 24/7/365 proactive support from specialists with detailed industry knowledge
  • Client-facing tools that offer transparency to the service
  • Quality assurance for vendor file quality and data integrity

FactSet_BenchmarkDataProviders Infographic
consolidated vetted global benchmark data