{"id":518038,"date":"2021-07-27T08:03:40","date_gmt":"2021-07-27T12:03:40","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/northern-trust-survey-98-of-managers-seek-to-incorporate-data-science-to-optimize-investment-performance\/"},"modified":"2021-07-27T08:03:40","modified_gmt":"2021-07-27T12:03:40","slug":"northern-trust-survey-98-of-managers-seek-to-incorporate-data-science-to-optimize-investment-performance","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/northern-trust-survey-98-of-managers-seek-to-incorporate-data-science-to-optimize-investment-performance\/","title":{"rendered":"Northern Trust Survey: 98% of Managers Seek to Incorporate Data Science to Optimize Investment Performance"},"content":{"rendered":"

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Northern Trust Survey: 98% of Managers Seek to Incorporate Data Science to Optimize Investment Performance<\/b><\/p>\n

Global Survey of 300 Investment Managers Recognizes the Value of Advanced Data Analysis in the Hunt for Alpha <\/i><\/p>\n

CHICAGO–(BUSINESS WIRE<\/a>)–
\nInvestment managers pressured by rising costs, increased transparency demands and the need to generate consistent performance are looking to harness the full potential of data in order to compete and position their firms for the future, according to a survey of 300 global asset management firms sponsored by Northern Trust.\n<\/p>\n

\nNorthern Trust today issued a white paper, The Art of Alpha: It\u2019s All About Investment Data Science, <\/i>that offers insights into how asset managers can improve investment outcomes with data strategies that better leverage technology, applying data science and behavioural analytics to processes that have historically resided on spreadsheets or other documents.\n<\/p>\n

\n\u201cThis survey shows asset managers are aware of the need to implement a digital operating model that enables efficient and safe growth, but at the same time are rightly focused on the imperative to spend scarce capital wisely,\u201d said Paul Fahey, head of Investment Data Science (IDS) at Northern Trust. \u201cAs evidence grows around the value of investment data science, asset managers are looking to their data to help them drive high quality outcomes so they can invest more effectively in their core activities.\u201d\n<\/p>\n

\nThe survey, conducted for Northern Trust by WBR Insights, shows asset managers recognize the value of centralized data platforms for decision making: 98% of respondents are already using, planning to pursue or interested in incorporating data science\/decision-support tools into their investment process in the next one to two years.\n<\/p>\n

\nHowever, while 57% of respondents said their data strategy includes leveraging a central platform for investment data consolidation, nearly half (48%) admitted that their organizations are still measuring the investment skill-level of their investment team by using a \u201cqualitative measurement, which mainly relies on anecdotal evidence of proper decision-making.\u201d\n<\/p>\n

\nThis incongruence was evident in other responses. Nearly half have a system to measure decision-making and inputs, but only 12% use a formal research management platform that is not based on spreadsheets. Only a quarter of respondents (24%) use a decision support platform to identify drivers of performance and behavioural root causes at a more granular and individualized level.\n<\/p>\n

\nThe survey data presents a view of current data science capabilities and the ambitions of global asset managers in the next two years, as well as some of their key strategic priorities:\n<\/p>\n