2020 Mindmeld Survey

With the advent of the coronavirus pandemic, the asset management industry has found itself under intense pressure to quickly adapt and transform. Not only are managers experiencing unprecedented economic uncertainty, but they are also faced with unique challenges across their internal operations as a result of the all-remote work environment.

In an effort to document how managers are accelerating their digital transformation to continue operating effectively in this new and unprecedented market environment, we surveyed over 60 global asset management CXOs who collectively represent $3.1 trillion in AUM throughout a number of sessions during our annual Mindmeld conference.

Key Findings

Leveraging the crisis for future transformation

45%

of funds indicated that they plan to move to a digital-first model post-COVID and will leverage the crisis as an opportunity to start implementing the shift.

Data issues impact fund efficiencies

53%

of all respondents said consistency of data was their biggest challenge, rising to 90% in funds focused on private assets.

Current Stage of Funds’ Data Journey

40% of funds are still early in their data journey

COVID-19 Points Funds to a new Operating Model that is Accelerating Their Transformation.

The arrival of the pandemic has marked the point of no return as the industry is now being forced to fully execute on its transformation in order to survive this unprecedented environment. Traditional and alternative managers have indicated a lack of transparency and desire for greater control throughout their core processes due to their reliance on opaque service providers.

Do you feel you have enough transparency and control over the admin NAV generation process?

Do you have full transparency into the day-to-day operations via service provider systems or direct API/data integrations?

Asset Managers Struggle with Data Consistency Issues During COVID-19

Making key decisions during a time of increased market stress has placed further pressure on firms’ operations teams and existing technology. For many firms, the all-remote work environment has brought to light a number of challenges spanning across data management processes and procedures due to the fact that face-to-face communication is no longer possible, making it more crucial than ever before to become digitally organized. These challenges include:

Do you have a centralized golden copy to manage your portfolio, counterparty and other legal entity datasets?

100%
of funds do not have a 360-degree view of deals within their fund due to the fact that they lack a single golden source to watch deal terms, structure, covenants, financials, KPIs, compliance testing results, etc.

With Uncertainty for the Future, Fund Managers Navigate the All-Remote Work Environment

Do you plan to move part of your staff permanently to a remote model when the pandemic ends?

Managers Continue to Position Funds for Future Growth with Investments in Operations and Technology

Traditional and alternative managers have indicated their acceleration and need of a digital transformation by leveraging digital-first outsourcing providers, native cloud platforms and data management core competencies. By implementing a strategic path forward for the remainder of 2020 and harnessing digital-first outsourcing providers, managers will alleviate a number of the operational headaches they have indicated while simultaneously enabling a scalable and flexible approach that leads to visible efficiencies.

Managers continue to accelerate their digital transformation programs with investments in operations and technology during COVID through:

What are your key focus areas in 2020 for your data platform?

The Path Forward for Accelerating Your Digital Transformation

Fund managers, no matter the size, hold the power to propel themselves forward during uncertain times by applying one consistent logic: heighten your outsourcing processes to the right providers. By implementing a digital-first model, managers will find themselves in a better, more agile position to manage capital, trade and communicate with end investors.

We believe that in doing so, those currently looking to achieve success will ultimately emerge stronger, become more profitable and see heightened levels of growth in a post-pandemic world.

For a deeper analysis of findings from this year’s survey, please contact sales@ivp.in or visit www.ivp.in/mindmeld2020/ to access full recordings of a number of recent sessions on these topics and more.