Vida’s ongoing journey: innovating portfolio solutions

J.P. Morgan’s Gurps Kharaud and Francesco Chioccola discuss Vida Portfolio Solution’s ongoing innovation

The evolution of Vida Portfolio Solutions is multifaceted, driven by clients’ changing needs and expectations in a complex financial landscape. Gurps Kharaud, global head of equities digital markets, and Francesco Chioccola, head of Vida Portfolio Solutions at J.P. Morgan, discuss how client collaboration has fuelled an iterative development process, with J.P. Morgan aiming to deliver ongoing innovation in portfolio management for the digital era.

Key drivers

Speed and efficiency are paramount in today’s dynamic environment, where quick decision-making and access to real-time insights are essential for success in portfolio strategies. Clients seek solutions that allow them to navigate complex markets with agility while maintaining a personalised service. 

Transparency is another key driver of demand. Clients require visibility into portfolio performance, underlying drivers, risk and market insights to make informed decisions. Comprehensive reporting and analysis tools that provide a clear view of portfolio performance and risk exposure offer the transparency clients are seeking.

In day-to-day life, there is an increasing expectation for products and services to incorporate digital solutions. Clients have come to anticipate rather than demand this integration. This shift extends to professional spheres, with clients readily embracing digital platforms for portfolio management to streamline workflow and enhance efficiency.

Providing a client-centric solution

Vida’s development journey began with the vision of creating a single client-facing platform for J.P. Morgan’s Cross-Asset Strategic Indices business. Initially lacking a unified digital experience across asset classes, and with clients demanding platform solutions offering advanced analytics, lifecycle management and reporting, the firm was driven to differentiate Vida with advanced tooling.

The firm held more than 20 client meetings before releasing the initial version. Throughout its expansion into various business streams – including Nexus, Delta One and Credit Financing – Vida has been developed using a client-centric approach, engaging clients from design through build out, to handover and beyond. This partnership model ensures ease of client adoption and facilitates ongoing collaboration for continuous enhancement. 

Additionally, Vida benefits from robust partnerships across the firm. The product team can leverage the firm’s vast expertise across sales, trading, structuring, quantitative research and technology. This collaborative approach allows for a more dynamic and responsive environment compared to traditional siloed structures.

Designing comprehensive capabilities

“We designed Vida to provide a single solution that offers comprehensive capabilities encompassing a wider range of asset classes and product types. It supports clients across their complete investment lifecycles – from product creation to analysis, investment management and reporting – all in one place,” says Chioccola.

Vida is able to offer such a range of capabilities thanks to a centralised product and cross-asset technology team, enabling rapid development and leveraging vast experience across business lines. Kharaud notes that Vida benefits from being an integral part of the strategy for the business areas it supports. “This uniquely positions us to deliver an industry-leading platform to our clients.”

Optimising client engagement

Vida integrates J.P. Morgan’s deep expertise into a digital solution that optimises client engagement. Historically, client enquiries required manual processes leading to static interactions. Now, with access to dynamic analytics, clients can explore data, pivot insights and analyse various scenarios in real time. J.P. Morgan’s internal sales and trading teams also use the platform, enabling simultaneous access to the same data as clients. This facilitates effective communication and real-time decision-making.

Despite the complexity of investment strategies, whether users are rebalancing, hedging or conducting post-trade analysis into the drivers of performance or risk, the interaction points remain unchanged. “This is the case even as the context changes – for instance, shifting from examining an option strategy’s Greeks to evaluating an equity strategy’s factors,” says Chioccola. He notes that this consistency ensures a shallow learning curve for users, who can apply their knowledge and skills seamlessly across different scenarios and contexts. 

The success of digitisation requires user intuitiveness, but this is also supported by engagement through demos, training, client support and readily available assistance from the product team. “With such differing client needs, we are committed to ensuring users have access to the resources and assistance they need to maximise their potential,” he says.

Streamlining the investment process

Vida enables the segmentation of investment strategies within portfolios by offering a range of options tailored to different risk profiles. For example, clients interested in vanilla strategies, such as factor-based equities, can choose from various options such as index strategies, Nexus or tactical Delta One custom baskets. This flexibility and scope enables clients to spread risk across different strategies. 

Simplified navigation allows clients to explore different strategies and execute investment decisions. By providing clear information about available businesses, products and associated features, users can understand and utilise it more effectively. 

Kharaud notes the importance of having an omni-channel approach to simplify the portfolio management workflow. “The ability to work with and visualise the data and access it in the delivery format of our clients’ choice means they can focus on what matters most, which is making investment decisions."

Innovating for the future

As Vida grows in size and scale, it is crucial innovation remains a priority in ongoing development efforts. A dedicated team of experts continually refines and expands the platform to ensure it meets the expectations and needs of clients. 

“As long as client demand persists for the platform, Vida remains committed to meeting their needs. This reflects a multiyear investment programme aligned with evolving client demand,” says Kharaud.  

He adds: “Regardless of the size of the firm or the trade, all clients receive the same high-quality experience from J.P. Morgan on Vida.”

Conclusion 

Vida’s commitment to client success in portfolio strategies is evident through its integrated strategy, innovation and client performance. By offering comprehensive capabilities, fostering collaboration and leveraging technological advancements, Vida empowers clients with diverse investment capabilities to navigate complex markets with confidence.

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