Indus Valley Partners Unveils Trends Shaping the Buy Side’s New Normal
New York, NY – December 15, 2021 – Indus Valley Partners (IVP), a provider of technology solutions and services to the buy side, has announced today four key trends that were identified during its 8th annual Mindmeld conference, held from October 21st to October 29th.
“The Return to (New) Normal” virtually convened a combination of global buy-side leaders and IVP subject matter experts to discuss the challenges and opportunities the industry is facing, and how the remote work environment is continuing to impact asset managers.
- Data & Analytics Become Key Pillar for Success: The area of data and analytics is beginning to create a noticeable differentiation between fund managers. Those that have found success have recognized the need for a flexible reference architecture to not only manage the explosion of data and leverage their growing number of outsourcing providers more efficiently but to also service the analytic needs that are rising in the front office. With this design pattern in place, fund managers can experience both a reduction of costs and operating risk.
- Outsourcing is Poised to Experience Substantial Growth: A new virtual asset management operating model is emerging with digital-first outsourcing providers sitting at the forefront of the transformation. Recognizing a growing desire to be able to ingest and control data from a variety of different sources, these providers are equipping managers with the services and technology they need to be able to exchange datasets intraday, monitor outsourced functions in real-time, and maintain bitemporal time series for audit and transparency. Although still in its early stages, managers who begin to enable this new virtualized model can potentially experience permanent cost reductions of 15-40%.
- Private Funds Continue to Grow While Navigating Through Stress: Continuing to gain strength in today’s low yield environment, private fund managers are simultaneously struggling behind closed doors. Although their AUM has seemingly exploded overnight, many are still running disconnected processes that are difficult to scale, leading them to realize their need for an integrated front-to-back solution that seamlessly connects their core functions and provides them with a 360-degree view of each deal. This will, in turn, eliminate operating risks by reducing the use of spreadsheets, helping funds manage complexity and creating unified reporting as a “golden source” of data.
- ESG Gains Momentum but Practical Challenges Remain: With regulatory and voluntary regimes gaining ground across the financial industry, ESG is becoming top of mind for both traditional and alternative asset managers. This rising momentum has forced many into action to plan for the implementation of ESG programs over the next 12 to 18 months. Data in this space, however, remains one of the biggest hurdles standing in the way of success as these managers face challenges related to its timeliness, transparency, integrity and subjectivity, as well as the inherent variability between different providers.
“For the past few years, even prior to the emergence of COVID, asset managers have been accelerating their digital transformations to prepare for what we’re facing now – a virtualized operating model,” said Gurvinder Singh, CEO of Indus Valley Partners. “Among the other trends discussed at Mindmeld, we believe this is one that will push the asset managers that embrace this type of model to an entirely new level of efficiency and growth, something we believe will become the new normal in the years to come.”
About Indus Valley Partners
Founded in 2000, Indus Valley Partners (IVP) has more than 160 global asset managers and private equity funds among its client base. $3.6 trillion of global AUM is managed using IVP technology. Specializing in portfolio management technology for traditional and alternative asset managers, IVP provides flexible and modular solutions that can be tailored to the specific requirements of any portfolio or fund. IVP employs 600+ developers, associates and analysts servicing clients globally from offices in New York, Salt Lake City, London, Noida, and Mumbai.