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

Upcoming Webinar: An Agile Approach to Investment Management Platforms for Private Markets and the Total Portfolio View

11 June 2025 10:00am ET | 3:00pm London | 4:00pm CET Duration: 50 Minutes Data and operations professionals at private market institutions face significant data and analytical challenges managing private assets data. With investors clamouring for advice and analysis of private markets in their search for returns, investment managers are looking at ways to gain...

BLOG

Reporting Seen Among Use Cases Benefiting from Cloud-based Data Management for AI

Artificial intelligence is being adopted by financial regulators at pace, putting pressure on the financial institutions that the overseers serve to double down on their reporting capabilities. It’s no surprise to find that the same AI that’s helping regulators can aid organisations in getting those reporting procedures in place. To do so, however, they need...

EVENT

ESG Data & Tech Briefing London

The ESG Data & Tech Briefing will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

AI in Capital Markets: Practical Insight for a Transforming Industry – Free Handbook

AI is no longer on the horizon – it’s embedded in the infrastructure of modern capital markets. But separating real impact from inflated promises requires a grounded, practical understanding. The AI in Capital Markets Handbook 2025 provides exactly that. Designed for data-driven professionals across the trade life-cycle, compliance, infrastructure, and strategy, this handbook goes beyond...