The existential question facing the buy-side is how to grow assets and service clients at lower cost. This drive for operational efficiency is dependent on a capability to collate accurate data about investors and decision makers, including their influence over the flow of money into their investment products. Industry leaders are investing in the capability to ‘look through’ omnibus accounts and fund distributors to create differentiated client experiences. Meanwhile, laggards are struggling with a partial view of sales performance and client engagement.
The COVID-19-induced lockdown has been the catalyst for an unprecedented spike in the adoption of digital channels by investors, including fund subscription solutions and the use of investor portals. It is both a watershed in investor behaviour and is good for business. Investors will not go back to paper. Hedge funds seeking 'Operational Alpha' will ride this wave to higher [...]
A data transformation is underway in the investment management sector. Leading managers believe that master data management (MDM) capabilities — including shared ontology, semantics, governance and stewardship processes — enable cross-team data sharing, allowing them to outperform competitors that have failed to invest. Of all the data domains, client Assets under Management (AUM), flow and revenue data is arguably the [...]
The investment industry’s love affair with spreadsheets costs millions each year and is stalling vital data transformations. In July 2021, Tim Harford of the Financial Times published an article titled ‘The Tyranny of Spreadsheeets’ that laid bare the potential real-world impact of mismanaged data. Pertinently for the investment management industry — in which the use of spreadsheets to manage and [...]
Aiviq previously spoke about how zombie rebates can ruin asset managers’ reputations and relationships with their clientsZombie Rebates Ruin Relationships and Reputations, highlighting the hidden cost of complex distribution networks that managers have built over time. We looked specifically at the cost of inaccurate distributor payments, such as trailer fees, retrocessions, commissions and rebates, that cost managers $220 million each [...]
Asset managers have woven complex networks with national and regional distribution partners over many years. The lifeblood that sustains these networks is distributor payments, such as trailer fees, retrocessions, commissions and rebates. A typical asset manager also unknowingly accumulates ‘zombie’ rebates, i.e. payment liabilities lurking outside of financial accounts due to incorrect calculations. These rebates rise from the dead to [...]