Seeking Alpha

How Are Asset Managers Navigating Through The Data Jungle

by: Lipper Alpha Insight

A shortage of available data is not one of the challenges facing asset managers today but as it becomes the defining tool of the trade, the costs relating to data are increasingly burdensome.

In the final topic covered in our CIO roundtable, the asset managers cover the need to keep costs low and returns high and how data can help with this challenge.

Our panel included:

Stuart Peskin, Investment Director, Standard Life Investments
Hank Smith, Chief Investment Officer, The Haverford Trust
U-Wen Kok, Chief Investment Officer, Victory RS Developed Markets Group
Maneesh Shanbhag, Co Founder, Head of Investments, Greenline Partners
Brian Reich, President and Managing Partner, Atrato Advisors
Pradeep Menon, Managing Partner, Thomson Reuters

The Relationship Between Data-Related Costs and The Low-Fee Environment

Currently, active managers are witnessing the erosion of their fees while the cost of doing business increases. Looking forward, dramatic shifts in demographics and evolving technology will increase pressure on the profession to evolve and adapt. The search is on for solutions and tools that asset managers can use to improve this picture. And help turn what looks like road blocks into opportunities.

Data and Compliance

The twin issues of data and compliance have become dauntingly entwined as a result of the European Commission's major new initiative, the second phase of its Markets in Financial Instruments Directive (MiFID II). This regulation - which US based asset managers differ on regarding its importance - increases transparency across the EU's financial markets and standardizes the disclosures required for particular markets.