The leading knowledge platform for the financial technology industry
The leading 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: How to get value from unstructured data: new approaches, tools and capabilities

Unstructured data volumes are huge, varied in type, and ready to be tapped to gain business value. While the theory is sound, the practicalities of capturing, managing, analysing and benefitting from unstructured data can be challenging, but there are solutions. This webinar will review the universe of unstructured data and how it is evolving, discuss...

BLOG

Scotiabank Partners Google Cloud to Accelerate Global Data and Analytics Strategy

Scotiabank has made a strategic partnership with Google Cloud to increase the bank’s cloud-first commitment and accelerate its global data and analytics strategy. As a Scotiabank trusted cloud partner for data and analytics, Google Cloud will help create a more personal and predictive banking experience for Scotiabank customers in the Americas and across the globe....

EVENT

Data Management Summit London

Now in its 12th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore the evolution of data strategy and how to leverage data to drive compliance and business insight.

GUIDE

ESG Handbook 2021

A-Team Group’s ESG Handbook 2021 is a ‘must read’ for all capital markets participants, data vendors and solutions providers involved in Environmental, Social and Governance (ESG) investing and product development. It includes extensive coverage of all elements of ESG, from an initial definition and why ESG is important, to existing and emerging regulations, data challenges...