As institutions move toward a multi-asset class approach, the importance of consistent and reliable data, and the coverage necessary to facilitate complex investment strategies, has never been more apparent.
So how are asset management firms addressing the demand for technology and incorporating it into their workflows?
From 2014-2016, the Aite Group surveyed over 100 asset management firms, with assets under management ranging from $500 million to $750 billion, to determine the top market demands and technological challenges facing both buy- and sell-side firms in relation to portfolio management, risk analytics, and investment research.
Among the findings uncovered by the survey:
- 59% of risk managers said the absence of technology support is a key problem
- 73% of risk managers cite a lack of integration between simulation systems with risk-factor models and risk reporting as a major obstacle to effectively managing market risk
- 52% of portfolio managers said updated technologies or a better understanding of available technologies would help improve their investment decision making
These results suggest that while firms are considerably more sophisticated in their technological demands than they were a few short years ago, they may not always have access to the best tools available.
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