In the race for alpha, asset managers often concentrate on investment strategies and market insights, yet a silent performance drag continues to hold many firms back: spreadsheets.
Once seen as a flexible tool, the spreadsheet has become a limiting factor, constraining scalability, efficiency, and risk management. As competition intensifies and clients demand real-time transparency, the industry is recognising that operational excellence can be as valuable as investment expertise, claims LSEG.
For many investment firms, reliance on spreadsheets and manual processes has become a critical weakness. The patchwork systems built around them expose firms to persistent operational risks and inefficiencies. In an era defined by regulatory scrutiny and rapid market shifts, these outdated workflows are not just inconvenient—they’re detrimental to competitiveness. Transitioning from manual systems to an integrated Portfolio and Order Management System (P/OMS) is no longer optional; it is an operational necessity for firms determined to maintain their edge.
The continued dependence on spreadsheets hides a range of unseen costs. While familiar and flexible, spreadsheets introduce high levels of operational risk due to manual data entry, complex formulas, and poor version control. These shortcomings increase the likelihood of human error—one misplaced formula or outdated data point can cascade into compliance breaches or flawed investment decisions. More critically, they hinder real-time visibility. Portfolio managers often make key decisions based on data that may already be obsolete, preventing them from answering the most fundamental question: what is my true exposure right now?
As firms grow and strategies become more complex, spreadsheet-driven workflows also impose an upper limit on scalability. Operational bottlenecks multiply as assets under management increase, and the lack of a reliable, auditable framework becomes a red flag for institutional investors. In due diligence processes, the inability to track trades or demonstrate robust compliance controls through spreadsheets can seriously undermine confidence.
Replacing these fragmented systems with an integrated P/OMS provides a single, unified source of truth for all portfolio activity. Such systems consolidate analytics, modelling, compliance, and order generation into a seamless, data-rich workflow. Proactive compliance becomes embedded within the process—modern platforms integrate client mandates and regulatory constraints directly into pre-trade workflows, flagging and preventing breaches before orders are placed. This turns compliance from a reactive task into a preventative control that enhances operational security.
An integrated P/OMS also strengthens decision-making. Portfolio managers gain the ability to simulate trades, view real-time risk profiles, and execute complex strategies with precision. Orders can be automatically generated and tracked from initiation to execution, providing complete oversight and control unavailable through spreadsheets.
The rewards extend far beyond efficiency. By eliminating manual processes, firms can unlock what is known as “operational alpha.” Time saved on administrative tasks can be redirected to research, portfolio strategy, and client engagement. Rebalances that once required hours can now be executed in minutes, enabling faster response to market dynamics and enhancing overall investment performance.
This is where LSEG’s integrated ecosystem delivers significant advantages. The LSEG Workspace desktop serves as a single interface for trusted market data and analytics, seamlessly connected to AlphaDesk P/OMS. This integration eliminates the high costs of managing multiple third-party vendors and data feeds, while enabling straight-through processing from portfolio construction to trade execution. By consolidating workflows, LSEG lowers total cost of ownership (TCO) and boosts operational resilience.
Ultimately, investing in an integrated operational infrastructure is a strategic move that signals strength, reliability, and readiness for growth. Firms that move beyond spreadsheets and embrace a connected, automated ecosystem position themselves to navigate market complexity with confidence—and to capture new opportunities with agility.
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