Jupiter Asset Management has signed a contract with Room Zero, a provider of specialist software to the asset management industry, for its powerful new revenue analysis component.
The Revenue Analytics module (an extension of the Room Zero AUM system and developed in conjunction with Jupiter) helps buy-side firms with business decision making through granular insight into profit contribution.
The module also assists with operational oversight through early identification of product ‘outliers’ and reducing the risk of over or underpaying rebates, for example.
Crucially, it extends the Room Zero AUM analytics to incorporate the revenue earned from products and their respective cost of sales, therefore facilitating net revenue and net margin contribution of net flows and redemptions.
The bolt-on service can incorporate platform fees, service fees, renewal commissions and rebates into its cost of sales calculations.
Assets under management and flow data are typically managed separately by multiple teams in an asset management business. Room Zero’s cloud-based software eliminates duplication of effort and silos, allowing multiple departments across a single firm to work and process common information.
Richard Warrington, co-founder at Room Zero, said: “We are assisting buy-side firms in a shift away from solely volume-based indicators, and towards the determination of profit contribution. It’s great to partner with forward-thinking firms like Jupiter in developing solutions to problems that face every asset management business.”
Last year Jupiter announced that it was handling data feeds covering mutual funds, hedge funds and segregated accounts when it first went live on Room Zero’s groundbreaking software.
Sam Fuschillo, head of finance at Jupiter Asset Management, said: “The revenue analytics module allows us to have dynamic visibility of discounts from sales teams and the impact of these on net margins at a Group level. The Board level information presented shows how margins have changed and why – such as changes in revenue mix from net flows. We are now able to see the revenue impact of net flows in a way that is clear, precise and aids business decision making on a timely basis.”
