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: How to optimise SaaS data management solutions

Software-as-a-Service (SaaS) data management solutions go hand-in-hand with cloud technology, delivering not only SaaS benefits of agility, a reduced on-premise footprint and access to third-party expertise, but also the fast data delivery, productivity and efficiency gains provided by the cloud. This webinar will focus on the essentials of SaaS data management, including practical guidance on...

BLOG

The Challenge of Data Integration in a Multiple Data Source World

By Inesa Smigola, Head of Presales, EMEA and APAC at Xceptor. Financial institutions have a growing data challenge – ever increasing data volumes, much of it unstructured, multiple data sources, and hugely varied data formats and structures. Across this is the additional challenge of inconsistent data quality according to data source and format– an Excel...

EVENT

TradingTech Summit London

Now in its 13th year the TradingTech Summit London brings together the European trading technology capital markets industry and examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Regulatory Data Handbook 2023 – Eleventh Edition

Welcome to the eleventh edition of A-Team Group’s Regulatory Data Handbook, a popular publication that covers new regulations in capital markets, tracks regulatory change, and provides advice on the data, data management and implementation requirements of more than 30 regulations across UK, European, US and Asia-Pacific capital markets. This edition of the handbook includes new...