Linedata “2016 Global Asset Management & Administration Survey” shows what keeps Alternative Investment professionals up at night
Author: Chris Andraca
There were 2 areas that were especially interesting about this report:
Main challenges that the industry faces
Ways that key stakeholders can distinguish themselves with their clients & customers
Areas of Challenge
This report shows that regulatory as well as operational concerns are top of mind with fund administrators, fund managers, and other alternative investment stakeholders. Surprisingly, these two concerns are even more important than other seemingly critical concerns like fund performance, new products, and more:
Looking deeper at regulation that has had the greatest impact, respondents mostly listed regulations that were designed to change behavior and alter the environment in which they operate. The following were the regulations that have had the greatest impact:
Areas of Differentiation
The other area that was very insightful from the survey was how firms and service providers see the opportunity to differentiate themselves. Below is a great infographic from the report showing how client service is perceived as a key differentiator by stakeholders:
We also noted that technology doesn’t individually pop out as one of the top 5, but technology is indelibly linked to other areas that popped like innovation, product offering, research, and others.
Interestingly, other areas that one would think would be critical (e.g., reputation, expertise) didn’t come up as often as differentiators.
Technology as an Answer
From our standpoint, there is a strong alignment between the key findings of this report and the reasons why we created BaseVenture.
Baseventure’s software is especially targeted at fund administrators, and we help them:
(1) adapt to new regulatory regimes
(2) maintain operational efficiencies/cutting costs
(3) improve client service as a means of differentiation
As Linedata put it themselves:
“Now is the time to embrace digitization to gain competitive advantage in this dynamic market.”
For more context on this report, 2016 is the sixth year of the Linedata “Global Asset Management and Administration Survey”, with respondents spanning fund administrators, asset managers, hedge fund managers, and other stakeholders. The survey had 200 respondents, with representation coming from Europe and North America.
You can find the entire Linedata report here.
Learn more about us at www.baseventure.com