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Data Management and Asset Manager Technology

Data: Friend or Foe, Alpha Generator or Resource Hog?

Investment Management firms both produce and consume huge amounts of data, initially in the investment process and then throughout the trade lifecycle. With investment fee income under pressure, most asset management companies are looking at ways to improve efficiency whilst also offering a more customer-centric experience. Some firms are moving from managing this proliferation of data internally to utilising managed data services or data-as-a-service providers. New technology platforms potentially provide a solution to some of these issues, with trade automation and digital compliance filings being just two of the ways in which processes may be streamlined and enhanced.

However, data has also evolved into a risk (or liability) for organisations having the potential to constitute insider dealing issues, and/or market manipulation risks. Valuable data also needs protecting from external attempts to manipulate or steal it. Big, micro and alternative data sets and data technology management have perhaps become the cuckoo in the nest for asset management companies, as they devour more resources and require skillsets that are often hard to obtain. These papers seek to shed some light on the way in which organisations both use and manage data sets and also highlight some of the potential risks should data mismanagement occur.

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Data as a Service: Attitudes, accelerators and obstacles (SimCorp, 2020)

In this SimCorp commissioned report, Adox Research delves into the potential accelerators and obstacles that financial services might face when adopting Data-as-a-Service and Data Management-as-a-service solutions.

Video: Data as a service (SimCorp, 2020)

In this video roundtable hosted by A-Team, the proposition of managed data services and data-as-a-service (Daas) is discussed.

Climate Data: Seeing through the fog (Aviva Investors blog, 2020)

For compliance reasons, this paper is only accessible in certain geographies

Aviva outlines how all kinds of data (big, micro and alternative) can be translated into meaningful information and presented in a way that encourages tangible action-driven outcomes.

Managing and Minimizing Execution Risk via Investment Proxy and Automation (State Street, 2020)

State Street suggests that proxy valuations should be an integral part of the investment process, particularly for multi-asset portfolios containing illiquid investments.

Three Tools to Improve the Fund Manager–Client Relationship (Enterprising Investor blog, 2020)

In this piece for CFA Institute’s Enterprising Investor blog, the author illustrates how technology can improve the manager-investor relationship.

A Guide to Selecting a New Client Communications and Reporting Vendor (SimCorp, 2020)

SimCorp explains why client communication and reporting has never been more critical to an investment firm’s overall strategy.

New Technologies Changing Asset Management (BlackRock, 2019)

For compliance reasons, this paper is only accessible in the United States

BlackRock highlights four lessons about how to make the most effective use of alternative data sources.

How Technology Will Redefine Relationships With Asset Management Clients (Deloitte, 2020)

Deloitte explores four key considerations for the asset management 'firm of tomorrow' to consider. Enhanced distribution technology delivers both efficiency and a better client experience.

AI and Risk for Financial Institutions (Clifford Chance, 2019)

Clifford Chance highlights the legal, ethical and reputational risk that UK financial institutions face when using AI, and suggests the steps that they should take now to minimise them.

Big Data and AI: Evolving market misconduct risks (Clifford Chance, 2019)

The use of big data and artificial intelligence is giving rise to new and evolving market misconduct risks, warns Clifford Chance. This paper highlights a speech by Julia Hoggett, Director of Market Oversight at the Financial Conduct Authority (FCA).

Digital Transformation in the Hedge Fund and PE Industry (2020)

This paper highlights how digital technologies are disrupting the financial sector. The use of big Data and artificial intelligence in the early stages of the investment process helps to reduce information asymmetries. At the same time, the impact on distribution now puts hedge funds and venture capital funds within the reach of retail investors.

Pension Infrastructure Technology Assessment (APG, 2019)

Dutch pension funds investigate the operational and stakeholder benefits of adopting blockchain technology.

2020 Investment Management Outlook: Crossing boundaries for profitable growth (Deloitte)

In this report, Deloitte highlights a number of operational efficiencies via the use of new technology that the successful investment management firm of the future will need to adopt.

Data Defense in Sustainable Investing (2020)

In this paper, the authors highlight how alt-data (often used in sustainability considerations) can become a liability, as well as an asset, for investment organisations.

Alternative Data Use Going Mainstream (Nomura Research Institute, 2020)

Nomura investigates how the use of alternative data is becoming ubiquitous amongst financial firms.

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