Winds Of Changes: Have A Strong Foundation When They Shift

Mitch Schulman
September 1, 2010

While brainstorming the topics for this newsletter, I came across a song by Bob Dylan titled “Forever Young” (1974). One verse struck me in particular. It states, “May you have a strong foundation when the winds of changes shift.” The words seem so simplistic, yet the message is so profound and powerful. Originally, the context of this lyric was a blessing from a parent to a child. However, almost eerily, those very same words could have been penned in early 2008 to serve as a warning to all investment managers to strengthen their Operational Infrastructures for what was about to come down the pike.

For investment managers, the winds of changes have swept in and are continuously blowing. The winds of changes have brought with them a host of issues, such as: increasing investor scrutiny and demands for transparency; new regulations including fundamental changes to the processing of certain types of financial instruments (derivatives); greater interest in risk management processes; new investment vehicle forms (e.g. hybrid hedge funds) and lines of business (e.g. separate accounts); to name a few.

In this issue of IntegriNEWS, we will be addressing some interesting topics that thematically relate to building a strong foundation. The articles are written by IntegriDATA’s senior consultants, who are renowned industry experts, with an average of 20 years of experience in a wide range of key business and technology roles at leading global financial institutions. We welcome suggestions for future articles as well as feedback on the newsletter in general.