Buy-Side Must Focus on Data Management to Maximise Efficiency

London - 22 March 2010

Asset managers also emphasise the importance of outsourcing and client servicing technology

TSAM, Europe’s largest buy-side technology and operations event, this year focused on the increasingly important topics of data management, outsourcing and client-servicing technology. Delegates, speakers and exhibitors gathered to share their thoughts on identifying the key developments, trends and challenges for 2010.

Speaking on behalf of Citisoft, a leading investment management consultancy, David Roy, management consultant said: “There is high demand among the investment management community for domain expertise with the continuation of operational re-design and platform rationalisation throughout the middle and back offices. We see more businesses increasing their expenditure on new technology, primarily in the alpha generation, distribution and client servicing functions.” Specifically, Mr Roy noted data management’s prominent role in all these improvement areas. “These projects can be a real challenge unless approached and managed appropriately. Data must be seen as an enabler not a disabler. It was encouraging to see evidence at the event of how this universally challenging area is being tackled.”

Building on this, Peter van Kleef, president & CEO, Lakeview Capital Market Services highlighted: “Every business has its core expertise. Many companies now realise that it is proving successful to recruit the know-how actively and outsource important aspects of business operations. Fundamentally, this saves time and reduces costs. In addition, the overall risk is reduced because the supporting infrastructure is kept to a minimum, which is also very attractive.”

“Data management outsourcing and application hosting were very popular cost cutting measures even before the financial crisis” added Danielle Newland, product manager, Eagle Investment Systems. “Despite this, those who buy into data management projects are still largely concerned that they might lose control of their data during the process. People are now talking about how to get the most out of their solution, both from a financial and control point of view. We are yet to see the ‘wave’ of regulation anticipated in the wake of the financial crisis, and as a result there is an air of hesitancy in terms of institutions bankrolling data management projects. However, with GIPS 2010 and other regulatory developments just around the corner, people should be looking forward and anticipating what measures would be best to implement before this occurs.”

The schedule of presentations, panel discussions and roundtables covered further topics of interest to the buy-side such as systematic trading strategies, portfolio management and OTC derivatives. TSAM annually hosts over 500 delegates and up to 40 exhibitors in London. TSAM North America is scheduled to be held in New York in September 2010.

Uday Singh, CEO, Osney Media, said: “TSAM is well positioned to provide a stimulating environment for the biggest names in the buy-side to get together and reflect on the past 12 months and, importantly, to plan for the future. Given the topics that have been at the forefront of this year’s event, it will be interesting to see the changes and developments in this industry throughout 2010.”

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