Jupiter Asset Management has adopted Room Zero’s latest revenue analytics module, a solid addition to the specialist software provider’s AUM system, to gain a clearer understanding of profit contribution across its investment products.
The new module, created in conjunction with Jupiter, provides asset managers with deep insights into net revenue and net margin contributions, allowing companies to spot product anomalies and avoid rebate risks.
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It includes platform fees, service fees, renewal commissions, and rebates in its cost-of-sales estimates to ensure a complete profitability analysis.
In addition to this, Room Zero’s software removes operational silos by combining revenue and asset flow data into a one cloud-based system, making it easier for teams within Jupiter to access and handle shared data.
Richard Warrington, co-founder at Room Zero stated: “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.”
Jupiter has been using Room Zero’s platform since last year to manage data feeds for mutual funds, hedge funds, and segregated accounts. The adoption of the revenue analytics module allows the organisation to obtain a better understanding of how net flows affect margins and profitability.
Sam Fuschillo, head of Finance at Jupiter Asset Management added: “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.”
By leveraging this enhanced analytics tool, Jupiter aims to strengthen its financial oversight and optimise its approach to revenue generation in an increasingly complex asset management landscape.
