Asset Managers Embrace Data to Navigate Market Uncertainty

by | Jun 25, 2024

FE fundinfo research finds 79% of Asset Managers consider data intelligence increasingly important as they seek to drive asset growth and reimagine operating models

London — 25 June 2024

FE fundinfo, a leading financial data company connecting the asset management industry to distribution networks in the UK, Europe and Asia Pacific, today announced its latest research report into industry challenges faced by senior asset managers as they navigate a rapidly changing market landscape. The report found that asset managers are increasingly integrating technology and data into their operations.

The asset management industry is facing a period of change. Not only do regulations continue to evolve and the economic environment remains challenging, but the rapid advancement of technology, particularly the rise of artificial intelligence, is disrupting traditional business models. Amidst these market headwinds, the research sought to understand what is top of mind for asset managers as they plan for the future.

The study, which interviewed just over 100 senior asset managers based in the UK, highlighted top threats facing asset managers today:

  • Regulatory changes (cited by 41%)
  • Pressure on margins and costs (39%)
  • Technological disruption, including AI (37%)

Longer term, asset managers are concerned about growing assets under management with (47%) citing this as the top challenge they face in the next three years.

According to the research, effective utilisation of data is key to addressing the combined challenges faced by the asset management industry. Data management infrastructure is the top investment priority, with 48% of asset managers planning significant investments in this area. The importance of data intelligence for effective decision-making is widely recognised, with 79% of respondents considering it extremely or very important. Furthermore, 88% agree that accurate and timely data is crucial for driving asset growth.

Asset managers are increasingly viewing data as the foundation for building a more connected and effective operation. Firms are reimagining their operating models, using technology to expand stating that integrating AI and other emerging technologies is a strategic priority.

The industry exhibits varying levels of AI maturity. A significant proportion (44%) remain in the early scoping phase, exploring the possibilities of AI and conducting research. Just under a third (32%) have progressed further and are implementing initial AI solutions. A smaller but notable group, 14%, use AI in multiple areas, while 6% have fully integrated AI into their core operations.

“Asset managers are facing an incredible amount of pressure – making regulatory compliance, efficient operations and growth tougher than ever,” said Liam Healy, CEO at FE fundinfo.

“Our clients, as well as the investment management community at large, are doubling-down on strategies underpinned by a data-driven approach and supported by integrated technologies. The industry is rapidly evolving, with clear opportunities and threats at play. Embracing change and choosing the right ecosystem of partners will be a must for successful organisations moving forward.”

Read the full report here: FE fundinfo – Asset Managers Report 2024.

This research surveyed 103 asset managers based in the UK with job roles of Chief Operations Officer as well as Heads of Distribution, Operations, Product Management, Marketing, Compliance, and Regulatory Reporting. All respondents are from firms with minimum £1 billion assets under management (AUM).

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