Technology drives edge
Technology will increasingly represent an answer for asset management firms seeking higher returns, according to UK-based research house Datamonitor.
In a research paper released today, Datamonitor said the drive to offer superior performance was changing risk procedures in both the front and middle office.
According to the report’s author, financial services technology analyst Amit Shah, the global asset management industry continues to exhibit significant reform and shows no immediate sign of slowing.
He said asset management firms were finding themselves delicately balanced between expanding their product set and performance statistics to boost revenues and maintaining operational efficiency at a time of downward pressure on existing margins.
Shah said the evolution of the asset management industry was causing firms to direct their trading activities to a point on the investment spectrum where risk and reward could be effectively balanced based on investor demand.
“The most successful players in the market will be firms that choose to alter their regime to focus on satisfying client needs through utilising advanced technological solutions that integrate real-time performance and risk information into the investment decision-making process,” he said.
“These market leaders will use alpha opportunities and combine these strategies with customised client-based solutions based on return objectives, risk and time horizons,” Shah said.
AUTHOR
Mike Taylor
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
