The Data Advantage: How Asset Managers Leverage Intelligence for Growth
As a commodity shaping modern business practices, experts have called data the new oil.
Asset managers recognise its value implicitly. From investment analysis to compliance reporting, data plays a role in every step of the asset management lifecycle. Because of this, data management emerged as a top priority of top asset managers.
For our latest Asset Manager Report, Driving Growth in Uncertainty, we spoke to 100 senior asset managers in the UK, and heard from 79% of them that data intelligence is a crucial area of investment. Let's explore how leading firms are building data-centric cultures and leveraging advanced analytics for competitive advantage.
Building a Data-Centric Culture
Building a data-centric culture in your firm won’t happen overnight, and requires a multi-faceted approach. The first step is to gain buy-in from senior leadership, as successful data initiatives start at the top. Leaders must champion the importance of data and allocate resources accordingly, setting the tone for the entire organization.
Choosing partners that share your values of data-centricity is also a key factor. At FE fundinfo, we are focused on data accuracy, availability, and distribution to provide a “golden source” of truth for our clients on both sides of the investment industry.
Data-centricity also requires cross-functional collaboration. Silos between departments such as investment, risk and marketing allows must be broken down, and goals aligned, for a more holistic use of data.
Finally, robust data governance is essential. Establishing clear policies for data collection, storage and usage is crucial for maintaining data quality and compliance. This not only ensures the integrity of the data being used but also helps firms prepare for an evolving (and often increasing) regulatory burden.
Data Must-Haves
88% of respondents told us that data plays a vital role in driving asset growth, so long as it is both accurate and timely.
High-quality data is essential for modern asset managers, serving as the foundation for informed decision-making, regulatory compliance, and operational efficiency. Effective data management enables firms to analyse performance, assess risks, and develop strategies that drive reliable asset growth for their clients.
By embracing a data-centric culture and leveraging advanced analytics, these firms have not only improved their investment performance but also enhanced client satisfaction and operational efficiency. As the asset management industry continues to evolve, those who can effectively harness the power of data will be best positioned for success.
Data Applications
While asset managers agree that data is crucial to the growth of their business, the market embraces a diverse set of data applications to make it happen. Most prominently, asset managers are using data to expand their product offerings and streamline operations to manage costs.
36% of respondents were bullish on emerging technologies like AI and machine learning to tackle their biggest challenges, and the same amount of asset managers were looking to strategic partnerships to weather the “perfect storm” of increased regulatory complexity and cost pressures.
Regardless of use case, reliable access to accurate and timely data is an absolute necessity for the modern asset manager who hopes to drive growth through this period of uncertainty.
Because of these, we feel confident that FE fundinfo is the right-fit partner for firms of all sizes. As the leading financial data company connecting the asset management industry to distribution networks in the UK, Europe and Asia Pacific, our comprehensive platform enables asset growth, drive operational efficiency and reduce risk for the investment management industry by connecting asset managers to distributors.
As the most-connected, most reliable “golden source” of data in the industry, we help our clients reduce time to market entry, facilitating growth. We’re building the data bridge between asset managers and distribution networks that connects the investment industry.