A Call to Action for Asset Growth: Embrace Tech Innovation or Face Obsolescence

The verdict is clear: organic investment performance and client engagement are the twin engines propelling AUM growth. Institutional investors are focused on delivering competitive returns and maintaining ironclad relationships with clients. Yet, we see an alternative avenue with nearly a third of firms looking elsewhere, like business acquisition or diversification, which to me, sounds like putting off the inevitable evolution required to thrive in today's market.

Let me level with you - technology is the behemoth driving operational costs, and if we're not investing in smarter systems, we're basically tossing money into a bonfire. We have nearly half of the industry clinging to Excel like a life raft, when it's clear that the tides have shifted towards outsourced tech. Those who don't pivot toward next-generation investment data management technology solutions are writing their own obituaries in this business.

Time - it's the one commodity in this industry that's more precious than gold, yet we've got firms spending 60-80% of their time collecting data to respond to client inquiries. That's an abysmal allocation of resources! If your team is drowning in data gathering instead of strategizing, you're already lagging behind.

And let's talk requests - if your clients are hammering you for investment insights, performance metrics, and data specifics, it's because they want and deserve transparency and responsiveness. Fail to provide it and you'll see those clients walk out the door.

Here's the kicker: even though firms are comfortably managing client requests now, the volume will only increase. The industry isn't waiting for anyone to catch up. Those with the foresight to harness investment management technology, data warehouses, and advanced analytics are the ones who will lead the pack.

At the end of the day, this study isn't just a collection of stats and figures - it's a roadmap to where investment management is headed. The industry is on a steady march towards a data-driven, tech-savvy future, and for those willing to invest and innovate, the rewards will be vast. It's time to embrace technology like your future depends on it, because guess what - it does. Let's not just read the data, let's act on it.

Our 2024 State of Investment Data Management study has just published. This new study reveals valuable insights into the current state and future trends of investment data management.  Download the report today.