About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Asset Managers Adopt Alternative Data and Advanced Analytics to Generate Alpha

Subscribe to our newsletter

Asset managers are adopting advanced analytics and alternative data to generate alpha and support client acquisition and retention, and business operations. The technology favoured for advanced analytics is machine learning, although natural language processing is also in the picture and smart robotic process automation is in trials.

Element22, a boutique data advisory firm, details adoption of alternative data and advanced analytics in a report sponsored by UBS Asset Management. The report, 2018 Analytics Power, discusses the results of a survey of 20 asset management firms in North America and Europe with combined assets under management (AuM) of $14.8 trillion, almost 20% of global AuM.

It notes that the survey participants are at varying stages of a four-year journey to develop robust alternative data and advanced analytics capabilities, and that some firms have reached an inflection point in generating alpha, improving business operations and increasing client acquisition and retention with alternative data and advanced analytics.

Predrag Dizdarevic, founding partner of Element22, says: “The benchmark study reveals broad-based experimentation with advanced analytics and alternative data across all types of asset managers. The leaders are realising substantial value from their programmes, especially in alpha generation, and we expect this to grow in the coming years. Newcomers should be as aggressive as possible in ramping up their programmes, otherwise they risk falling insurmountably behind the leaders which could be a key differentiator in the industry.”

Ulrich Koerner, president, UBS Asset Management, concurs, saying: “Amid an environment of downward pressure on fees, and an increasing shift from active to passive investment strategies, asset managers must find ways to differentiate themselves and remain competitive in the coming years. With more alternative data available than ever before the most successful firms will likely be those that leverage advanced data analytics solutions across their business to generate value for themselves and their clients.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Re-architecting the trading platform for interoperability, resilience and profitability

Trading platforms have come a long way since the days of exchanging paper certificates and shouting across trading floors, pits and desks in the early 2000s, but there is progress still to be made as firms strive to reduce risk, increase profitability, and make their mark in digital assets trading. This webinar will review the...

BLOG

Inaugural AI in Data Management Summit NYC Sets New Benchmark in AI Discussion

A-Team Group’s inaugural AI in Data Management Summit NYC set a new benchmark in the global discussion around artificial intelligence. Leading figures from the worlds of finance and technology gathered in New York to share best practice guidance and observation, real-world case studies and forecasts for the exciting – and challenging – year ahead. The...

EVENT

Data Management Summit New York City

Now in its 15th year the Data Management Summit NYC brings together the North American data management community to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

Regulatory Data Handbook – Fifth Edition

In response to the popularity of the A-Team Regulatory Data Handbook, we have published a fifth edition outlining the essentials of regulations that are likely to have an impact on data and data management at your organisation. New to this edition is a section on RegTech, covering drivers behind the development of innovative regulatory technology,...