Investment Management KPIs, Metrics & Benchmarks

KPIs & Metrics to Measure and Manage Wealth Management Performance

What are Investment Management KPIs?

Investment management firms – similar to broker dealers, or investment banks – are responsible for managing and growing client assets. In addition to attracting new clients, asset managers must effectively service existing assets and work to maximize return on investment throughout their portfolio. Investment management KPIs may measure investment performance (e.g., Return on Assets, etc.), as well as the efficiency of the firm in executing trades, servicing client assets, on-boarding new accounts and managing online trading platforms.

Using KPIs to Measure Asset Management Sales and Operations

A typical asset or investment management firm can be divided into three major parts. The front office interacts with new and existing clients to develop relationships and provide financial advice. The middle office on-boards new accounts and manages trade activity. The back office provides trade support, financial reporting and other technical support for the firm. KPIs should measure performance within, and across, these three major groups – and not only in terms of investment performance. Efficiently managing trades and providing quality client service help the firm grow its earnings and client base.

Investment Management Metrics: The Top 6 for Operations

There are plenty of metrics for measuring investment performance and market trends. KPIs for monitoring investment management and asset management firm operations, however, are less well-defined. Here are 6 KPIs that can be used to measure operational efficiency for asset managers:

  1. 1.Assets Under Management (AUM) per Employee
  2. 2.Client Retention Rate
  3. 3.Clients per Registered Financial Advisor
  4. 4.Account On-Boarding Cycle Time
  5. 5.Trade Error Rate (by Asset Class/Type)
  6. 6.Trade Settlements per Back Office Employee

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