The report, Right Time, Right Content, produced in conjunction with analyst firm Aite Group, surveyed a variety of European, North American and Asia-Pacific-based firms focusing on their investment data management structures and needs.
"We undertook this survey with the Aite Group to highlight the growing importance of investment data management to the industry and to help identify the key challenges firms face,” Julian Webb, head of investment data management and analytics at DST Global Solutions said.
He added, “The findings clearly highlight the fact that addressing the challenges is becoming a critical issue that firms need to prioritise in order to continue to operate successfully.”
The report revealed that while there are mixed drivers pushing managers to consider new support structures for investment data management, data aggregation is a common challenge.
More specifically, the report found that 62 per cent of those surveyed said data aggregation was their biggest challenge. Ninety per cent also felt they had experienced an increase in the need for data aggregation capabilities and they were ill-equipped to support these requirements.
“Data is the DNA of investment management firms, yet finding ways to better harness the value of this data has been an under-served challenge in the industry,” said Virginie O'Shea, an analyst with Aite Group, covering data management and post-trade technology.
“These [data aggregation] challenges can, in fact, act as a barrier to entry into new markets due to a lack of scalability.”
In Australia, these data difficulties are particularly acute and pertinent as the government has introduced the Stronger Super reforms, aimed at streamlining communication and data within superannuation funds.
“Superannuation funds in Australia are looking at how they solve data management challenges ... [and] firms need to look for a long-term solution if they are to derive value and information from the data on hand, beyond meeting regulatory reporting requirements,” Adam Ratner, sales director, Australia and New Zealand for DST Global Solutions said.
