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These are challenging times for asset management firms. The volatility in 2020 coupled with structural shifts in the industry and new reporting requirements, including on environmental, social and governance (ESG) metrics, make for a busy agenda. Further to this, competition has increased and although active management made a bit of a comeback during the covid-19 pandemic, there is pressure on fees while the cost associated with reporting and compliance has gone up.
Many buy-side firms are overwhelmed by the data management challenges they face, which range from quickly onboarding and integrating the content they need in the investment management process to keeping up with client, investor and regulatory reporting requirements. Alveo recently ran a survey covering 100 asset managers to detail these challenges. Many firms feel that they are running to stand still and need to rethink their data management and analytics to properly provision their business uses. This is particularly pressing as firms have ever-increasing volumes of data and diversity of data sources at their disposal and need new alternative sources, such as ESG data, both for their asset allocation as well as for their regulatory reporting requirements.