Over 80 % of Investment Managers Grapple with Cost of /Benchmark Data —Survey

A survey of 51 investment managers by RIMES, a financial data provider, found that index and benchmark data has become "integral" to a number of buy-side department but that cost is difficult to manage.

Over 80 percent of investment managers across the globe responding to a survey expect the number and cost of index and benchmark data they use to increase, according to RIMES, a financial data management company.

In a survey of 51management companies across the world, the main finding is that benchmark data has become integral to a number of departments within buy-side firms, yet many are finding it impossible to control costs and manage data efficiently.

Other key findings were as follows:

• 80% of surveyed investment managers expect that clients’ demand for benchmark data customization will increase • • Benchmark data has become integral to a number of departments within buy-side firms, including performance, risk, compliance, data management and the front office • • Cost control, centralization, data governance, validation and storage are the main challenges faced by the majority of investment managers • • Improvements in quality, efficiency and cost-control are the key driving forces behind the decision to adopt best practice in data governance In a statement, Alessandro Ferrari, SVP Global Marketing at RIMES, comments: “This survey reveals the extent of the data management challenges currently being faced by the buy-side. These challenges are no longer isolated to one or two departments – index and benchmark data is being used across the organization, and so firms must take an enterprise-wide view in order to manage it.

“Benchmark data is of strategic importance to the asset management industry, but can be difficult and costly to manage,” he said. Although asset managers can do little to control data licensing costs, there is much that can be done to reduce the overall costs of managing data by increasing operational efficiency, he insisted.

“Successful firms will invest in the right data processing and data governance solutions, and by using a managed data service, they can help to reduce the complexity of managing large volumes of complex data while improving business agility,” added Ferrari in the release.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio