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Featuring highlights of the State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit

Featuring highlights of the State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit

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Il Salone del Risparmio - Presentation Il Salone del Risparmio - Presentation Presentation Transcript

  • DATA & ANALYTICS Data and Analytics: A New Toolkit for Asset Managers Featuring highlights of the State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit
  • DATA & ANALYTICS 2 34% 33% 33% North America Europe Asia Pacific About the Research A global survey of more than 400 asset managers and institutional asset owners on investment data and analytics, conducted by the Economist Intelligence Unit on behalf of State Street (August and September 2013). The survey included 74 traditional asset managers (focused on equities or fixed income strategies). Respondents by Region Respondents by Type  Banks  Insurers  Pension Funds  Other  Diversified Asset Managers  Traditional Asset Managers  Alternative Asset Managers Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit 11% 18% 20% 8% 8% 16% 19%
  • DATA & ANALYTICS 3 Disruptive Industry Trends Require a Rethink of Data Strategies Asset managers are redesigning their operating models and data infrastructures in response to five forces of change Strategic impact Data challenge New standards on risk Investors and regulators demand greater transparency Integrated data analytics across more complex portfolios Outcome-based investing Benchmarks will be more personalized around investor goals Custom benchmarks require new data and tools to measure performance Regulatory complexity Increased reporting requirements in multiple jurisdictions Flexible reporting platforms; compliance rules integrated into operational systems Electronification of trading Decision-makers in front office need to be able to act faster on investment insights Need for real-time data as well as better order management and portfolio optimization tools Support for new markets Need broader insights to select investments and ways to service local needs Systems that can adapt to meet local market demands, while retaining benefits of scale
  • DATA & ANALYTICS 4 The Industry is Investing Heavily to Keep Pace Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit % Change In Investment into Data and Analytics Over Past Three Years (Traditional asset manager respondents only) 11% 77% 12% 0% 0% Significantly increased our investment (>20%) Slightly increased our investment (1-20%) Made no change Slightly decreased our investment (1-20%) Significantly decreased our investment (>20%)
  • DATA & ANALYTICS 5 Investment is Targeted at Decision-Making in the Front Office • Decision-support for the front office becomes a priority • Need to move closer to real- time information Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit How Investment Will Be Prioritized Across a Range of Data Tools (Traditional asset manager respondents only) 26% 42% 32% 22% 22% 57% 39% 41% 47% 35% Portfolio optimization Order Management Systems / Execution Management Systems Benchmark data Performance analytics Risk analytics Significant increase Slight increase
  • DATA & ANALYTICS 6 Data and Analytics are Now a Firm Priority for Institutional Investors … Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit Data is the Key to Addressing a Wide Range of Strategic Concerns • More than 9 out of 10 (93 percent) institutional investors view data and analytics as a high strategic priority • For 35 percent, data and analytics is the most important strategic priority 35% 58% 7% 0% 0% It is the most important strategic priority It is a high strategic priority (near the top) It is a mid-level strategic priority It is a low-level strategic priority (near the bottom) It is not a strategic priority (Traditional asset manager respondents only)
  • DATA & ANALYTICS 7 An Industry Divided by Data 1. “Data Leaders” – Companies in the survey whose data and analytics are already a source of competitive advantage 2. “Data Laggards” – Have yet to gain full benefit from their data Data is a competitive asset … But few know how to use it • 66 percent of traditional asset managers believe data will be a key source of competitive advantage in the future • 88 percent increased investment in data infrastructure in the past three years • Only 23 percent of asset managers are reaping the full benefits from their data and analytics capabilities today • Our research reveals that a capability gap is opening up between data leaders and data laggards Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit Yet the Industry is Polarized by Its Approach
  • DATA & ANALYTICS 8 % confident in capability X  • More likely to get distracted by the complexity of data management • Less likely to feel their data capabilities are keeping pace with the growth of their business • Generating forward-looking insights from data • Integrating risk and performance analytics • Optimizing their electronic trading strategies 50% 33% 92% 7% Data Leaders are Better Prepared for the Challenges Ahead 53% 50% 43% 64% 72% 70% Leaders Laggards (All respondents)Data leaders are more confident in ... % agree with statementBy contrast, data laggards are … Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit (All respondents)
  • DATA & ANALYTICS 9 63% 81% Laggard Leader Tools for regulatory compliance Multi-asset class risk tools Custom benchmarks/indices % that view area as a strength 59% 70% Laggard Leader 38% 60% Laggard Leader Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit Data Leaders Have Smarter Tools for Managing Risk, Compliance and Performance (All respondents)
  • DATA & ANALYTICS 10 Defining a New Service Model Data Readily Available Adaptable Systems Smarter Insights Challenge • Accuracy of information is the top data challenge for traditional asset managers (cited by 43 percent) • Systems must adapt to support multiple geographies, asset classes and regulatory regimes • Only 18 percent of traditional asset managers have all of the talent they need to manage data effectively Solution • Trusted data providers • Integrate data to achieve “one version of the truth” • Systems that support global reporting • Integrated view on risk and performance • New outsourcing models focused on insight as well as cost
  • DATA & ANALYTICS 11 In Summary: New toolkit for asset managers Better risk and performance analytics • Asset managers moving into more customized solutions will need risk and analytics tools with multi-asset class capabilities Manage Regulation • Develop reporting systems with the flexibility to meet evolving regulatory demands across multiple jurisdictions Integrate Your Data • Traditional asset management firms need to invest in enterprise data warehouses and better data governance Accelerate Investment Decisions • Better, more accurate and timely data is key to making better investment decisions and being able to act on these insights in real time Future-Proof Your Systems • Traditional asset managers need flexible systems that can adapt as investment goals and strategies evolve
  • DATA & ANALYTICS 12 This document is for marketing and/or informational purposes only, it does not take into account any investor's particular investment objectives, strategies or tax and legal status, nor does it purport to be comprehensive or intended to replace the exercise of a clients own careful independent review regarding any corresponding investment decision or review of our products and services prior to making any decision regarding their utilization. This does not constitute investment, legal, or tax advice and is not a solicitation to for products or services or intended to constitute any binding contractual arrangement or commitment by State Street and/or any subsidiary referenced herein to provide securities services. State Street hereby disclaims all liability, whether arising in contract, tort or otherwise, for any losses, liabilities, damages, expenses or costs arising, either direct or consequential, from or in connection with the use of this document and/or the information herein. This document contains certain statements that may be deemed forward-looking statements, which are based on certain assumptions and analyses made in light of experience and perception of historical trends, current conditions, expected future developments and other factors believed appropriate in the circumstances. © 2014 State Street Corporation CORP-0934