Survey reveals biggest business challenge of this year
15 April 2019 London
Image: Shutterstock
Some 34 percent of asset managers said maintaining investment performance is the biggest business challenge of 2019, according to Linedata’s ninth global asset management survey.
The survey, which focused on concerns of a continued market downturn, concentrated on how asset managers worldwide can navigate the downturn as a new norm.
The survey also found attracting new client assets and sustaining operational efficiency were also of concern to asset managers, polling as the second and third biggest business challenges, respectively.
A further 23 percent of asset managers said doing more with data is seen as particularly important to investment performance and believed improvements to investment strategy decision making will be the biggest data analytics opportunity.
Linedata also found the hype around robo-advisers and blockchain seems to have died down this year, with 7 percent of respondents describing robo-advisers as the biggest disruptor to the asset management industry over the next five years, down from 22 percent in 2018.
Similarly, some 12 percent of respondents saw blockchain as the biggest disruptor, this percentage fell from 16 percent last year.
Gary Brackenridge, global head of research and development and North America asset management at Linedata, 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.
He added: “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.”
The survey, which focused on concerns of a continued market downturn, concentrated on how asset managers worldwide can navigate the downturn as a new norm.
The survey also found attracting new client assets and sustaining operational efficiency were also of concern to asset managers, polling as the second and third biggest business challenges, respectively.
A further 23 percent of asset managers said doing more with data is seen as particularly important to investment performance and believed improvements to investment strategy decision making will be the biggest data analytics opportunity.
Linedata also found the hype around robo-advisers and blockchain seems to have died down this year, with 7 percent of respondents describing robo-advisers as the biggest disruptor to the asset management industry over the next five years, down from 22 percent in 2018.
Similarly, some 12 percent of respondents saw blockchain as the biggest disruptor, this percentage fell from 16 percent last year.
Gary Brackenridge, global head of research and development and North America asset management at Linedata, 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.
He added: “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.”
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