The shift from spreadsheets to advanced data solutions in asset management

The shift from spreadsheets to advanced data solutions in asset management

The latest survey conducted by Northern Trust, involving 300 global asset management firms, has unveiled a notable shift towards prioritizing product quality and accuracy. Unlike the previous year, a significant majority of asset managers (72%) are now focusing on enhancing their product strategies, which includes improving distribution methods, data management, and outsourcing functionalities.

Notably, 83% of the respondents considering outsourcing believe it will boost their data management capabilities. This change highlights the sector’s growing inclination towards technological partnerships and the continuous need to manage costs effectively.

Kidbrooke, a unified analytics and data management platform for financial decision-making, recently delved into how asset managers can optimise data management and move away from Excel. 

The changing landscape of global investment options necessitates that institutions not only manage but also adeptly present these offerings, it said. Asset managers are increasingly tailoring their product strategies to align with client objectives and risk profiles, while also ensuring the smooth maintenance and versioning of investment products.

Challenges such as timing discrepancies in occupational pension schemes, where delays can result in significant mismatches due to market fluctuations, underscore the critical need for accurate data management. The traditional reliance on spreadsheets, fraught with risks of inaccuracies and inefficiencies, is being questioned as institutions look to mitigate potential adverse impacts on clients and advisors alike.

Addressing these challenges, Northern Trust’s survey highlights that 83% of executives are prepared to revamp their product strategies, with 77% planning to adopt new technologies to elevate the investor experience. The discussion in today’s blog pivots around the best practices for managing investment product universes using advanced technology.

Kidbrooke specialises in providing a comprehensive platform that simplifies the management, versioning, and monitoring of investment products such as mutual funds and model portfolios. By integrating Kidbrooke’s platform’s APIs, it can automate the laborious processes of updating product universes, thereby enhancing efficiency. Moreover, its platform aggregates and enriches market data from various third-party providers, offering valuable analytics on both individual products and portfolios. This capability is particularly beneficial for customizing model portfolios, including the adjustment of metadata and rebalancing strategies.

When developing the platform, Kidbrooke prioritized the seamless integration of various investment product types and subsegments. This approach is vital for ensuring that product data is not only accessible but also insightful, addressing the most significant data management challenge identified by 42% of survey respondents.

Furthermore, the platform’s ability to provide quick insights and adapt model portfolios across different execution platforms reduces complexity and manual workload, enhancing data utility for institutional use. Additionally, the platform employs automated mechanisms to maintain up-to-date records of portfolio versions and investment product data, effectively minimizing risks associated with manual errors and delays.

While spreadsheets have been a staple in analytical processes, the shift towards API-based analytics presents several advantages, particularly in terms of automating time-tested product management workflows. This transition not only frees up valuable resources but also reduces dependencies on key personnel, thereby enhancing operational efficiency.

In a recent collaboration, Kidbrooke partnered with Max Matthiessen, a leading Swedish insurance broker, to optimize their mutual funds and model portfolios management. Utilizing Kidbrooke’s KidbrookeONE APIs, Max Matthiessen has significantly improved the delivery and continuous curation of investment product information across various channels. “Kidbrooke’s platform enables us to describe our funds more clearly to current and potential investors, especially from a sustainability perspective. The implementation was very smooth and fast. We are very satisfied with the cooperation,” Niklas Söderström, CEO at Ruth Asset Management, part of Max Matthiessen, commented.

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