Majority of AMs to change operating model in 24 months

More than eight in 10 (83%) of asset managers will change their operating model in the coming 24 months, according to data and solutions provider Confluence’s 2017 Asset Management Trend Survey.

Regulatory change (60%) and technology innovation (49%) were cited as the key factors driving the expected change.

Compared to the earlier 2016 Trend Survey, this year’s report identified a significant increase in regulatory reporting cited as a key objective for back office operations over the coming two years – from 47% to 60%. Confluence cites post trade regulations including Form CPO-PQR and Form PF in the US, and AIFMD in the EU as drivers of regulatory reporting.

Other key objectives that asset managers cited as linked to the need for operating model changes include centralising fund data, to improve data accuracy and consistency, reduce errors and meed regulatory demands.

This year’s Trend Survey is the fifth since 2008.

Automation continues to be a clear goal of the industry; Confluence reported that reducing manual processes, increasing data accuracy and consistency, and controling errors and costs are cited by those surveyed.

Todd Moyer, COO at Confluence, said: “While the concerns of the asset management industry in 2017 are largely consistent with what we saw in 2016, the rise in urgency on display is what really explains the transformation we have seen taking place this year.”

“Our survey respondents clearly see that the time for automation and technical innovation has arrived. Heightened regulatory requirements are turning a pent-up desire to automate into a need to automate. And technology innovation in the ‘regtech’ space is enabling this fundamental transformation in back offices across the industry.”

The survey was conducted between 7 September and 8 October, 2017, consisting of 125 online interviews with asset managers and third party service providers.

Further details are available at www.confluence.com

 

ABOUT THE AUTHOR
Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 16 years he has been based in London writing about funds and investments . From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope.

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