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Regulatory shifts driving investor data strategy

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By Jessica Yun
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2 minute read

Institutional investors are making changes to the way they manage their data thanks to shifts in regulatory winds, State Street research has revealed.

A survey commissioned by State Street Global Exchange (SSGX) has found more than half (56 per cent) of respondents identified changes in regulation as the primary driving factor behind “major technological investments over the past five years”.

The survey, conducted by PollRight, interviewed 86 institutional investors in the sectors of hedge funds, real estate and private equity between March and April.

The survey also found 46 per cent of respondents felt a better data strategy had led to “improved alignment between … investment and risk teams”.

In a statement, SSGX data platform DataGX(SM) global head Subbiah Subramanian said an “explosion in data complexity” had changed the way asset managers operated.

“Today’s investment climate requires an overwhelming amount of data, and as the lines between front, middle and back office continue to blur, smarter data management is absolutely essential for effective performance and recognizing growth opportunities,” he said.

Sixty per cent of respondents were planning to either partly (37 per cent), fully (15 per cent) or begin outsourcing (8 per cent) their business’ data management functions across the next three years.

Indeed, poor integration between different data types was ranked the number one investment data and analytics-related challenge for the businesses of institutional investors.

“An integrated data management platform is critical to institutional investors as they continue to chase for yields and meet increasing regulatory demands,” said State Street Global Exchange head for Asia Pacific Marko Milek.

“With fragmented workflow, data and reporting requirements among investors in Asia Pacific, we are seeing increasing demand in customized data solutions to manage and turn their data into valuable insights.”