Technology solutions firm Linedata has released the results of its ninth Global Asset Management Survey, revealing that firms are looking to capitalise on “quick wins” from data analytics and digitisation amid concerns of continued market downturn.
The introduction of MiFID II and GDPR had been expected to create a period of relative calm, which would lead to longer-term innovation projects such as digital transformation and artificial intelligence. However, relative instability and a general market downturn is, according to the survey results, pressuring asset managers to look for opportunities with their data instead, and to focus on short term gains in case of more disruption.
Additional findings from this year’s survey include a growing uninterest in block-chains and robo-advisers, and that maintaining investment performance remains the biggest challenge, with attracting new clients and sustaining operational efficiency perceived to be more difficult due to last year’s disruptive downturns.
The results also suggested that the dominance of passive investment was set to continue, a recurring finding in the investment sector, even though many firms remain unable to benefit from this. ETFs may well be perceived as the products managers are expecting see growth in this year yet only nine percent of those who completed the survey plan to launch mainly passive funds, while 41 percent intend to launch chiefly active funds.
Gary Brackenridge, global head of R&D and North America Asset Management at Linedata, believes that the disruption suffered across the investment sector late last year could have longer term developments.
He said: “Asset managers were struck by a tumultuous end to last year that has led them to rapidly refocus on the critical initiatives that can boost operational efficiencies and alpha generation in 2019. In this environment, doing more with one of their greatest untapped assets – their data – is essential”
“We expect to see more developments in this area as well as a rise in outsourcing, which can not only facilitate advanced data analysis, but enable managers to focus on delivering investment performance and exceptional client service to retain and attract assets” he added.
Linedata’s survey was completed across November and December 2018, with approximately 100 asset managers, hedge funds, fund administrators, banks, wealth managers and custodians across the Europe, North America and Asia filling in the questionnaire.
