Asset managers are focusing on better quality and accuracy of their data and improving the investor experience over the next two years.
Research by Northern Trust shows a global drive to ensure that data is prioritized (72% of the 300 global asset managers who took part cited this as their top concern), while investor experience (70%) comes a close second and expanding the product range is third (60%). Controlling costs is a strategic priority for just 46% of respondents.
The focus on quality and accuracy of data is a sharp rise from the firm’s survey of asset managers in 2022 when just 45% put this as their top priority with most citing efficiency and cost controls.
“Asset managers are focused on honing their distribution channels, and having access to high-quality, consistent data is crucial in driving those decisions,” said Ryan Burns, Head of Global Fund Services (GFS), North America. “It’s important that managers have a deep understanding of their clients’ needs so they can find them the right product at the right time, because there is no one-size-fits-all solution.”
The changing and diverse requirements of investors means that 83% of poll participants are looking to expand their product range.
While costs and efficiencies may not be the number one concern right now, it’s still up there with respondents assessing the impact of T+1 and economic conditions. This means that non-core activities – such as securities finance, liquidity management, trading and foreign exchange - may be outsourced, 59% of respondents are looking at this and 83% are considering outsourcing data management.
“Many of the challenges we’re seeing today come back to the same core issue: data,” says Clive Bellows, incoming President of Northern Trust in Europe, Middle East, Africa (EMEA). “As a result, managers are looking to leverage new technology, and the survey found that many managers are looking to enhance their data management strategies by engaging their custodians for outsourced solutions.”
The research is featured in a whitepaper called The Next Chapter in Driving Growth in Asset Management 2024.
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