Forefront Communications

FTF News: Asset Managers Moving to Research Management Platforms: Survey


Alexandra Hamer

Alexandra Hamer

Asset managers are ready to adopt research management platforms over the coming two years, a new survey finds.

Potentially, that readiness represents a coming sea-change in an industry traditionally based on the skills and wisdom of its individual practitioners. The drive to “automate investment team workflows” is focused in the front office, where the trading actually occurs, according to the survey, which was commissioned by MackeyRMS and conducted by Market Measurement, a research provider.

MackeyRMS characterizes itself as a provider of SaaS, or software-as-a-service, research management software. The firm, which was founded in 2011, maintains offices in New York, Boston, London, and Sydney.

One-hundred interviews were conducted with “investing, technology, operations and compliance professionals in the asset management industry to assess their views and plans for improving internal research management processes,” MackeyRMS says in a statement.

Of the 100 participants in the survey, 65 were long-only asset managers and 35 were long-short managers. Twenty-two of the participants identified themselves as desktop residential mortgage services users and 35 identified themselves as SaaS-based RMS users.

Findings of the report based on the survey, entitled “2020 Investor Survey: Modernizing Research Management,” follow:

  • Nearly all, or 96 percent, of the asset managers who don’t currently use a dedicated platform said their firm was likely to extremely likely to evaluate adopting a third-party system in the next 24 months. All respondents from asset managers who built an in-house system also said their firm was likely to extremely likely to evaluate adopting a third-party system in the next 24 months;
  • Thirty-three percent of asset managers currently using a third-party research-management platform put it into effect within the last two years;
  • Fewer than one in five (18 percent) of firms using a third-party system say that it was in place more than four years ago;
  • Almost four of five (88 percent) of asset managers using a third-party research management system say it speeds up their response to regulatory inquiries;
  • Fifty-nine percent of asset managers using a proprietary research management tool say their platform speeds up their regulatory responsiveness;
  • More than one quarter, or 27 percent, of asset managers not using any research management tools say responding can take up to or more than two weeks.

To read the full article, click here.

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