InvestOpsDaily
in-depth
THE OFFICIAL NEWSPAPER OF INVESTOPS 2019
DATA
Data strategies dominate
buy-side operations agenda
DATA MANAGEMENT STRATEGIES HAVE BECOME A FOCAL POINT FOR BUY-SIDE OPERATIONS TEAMS, AS THEY LOOK TO
FIND NEW WAYS TO SUPPORT INVESTMENT DECISIONS.
D
eciding on an effective data management
strategy has become a focal point for buy-
side operations teams, both for regulatory and
investment decision purposes, according to
panellists.
As buy-side firms continue to drive down the
path of digitalisation, many are taking the next
step in achieving ‘digital alpha’. This means
adopting a strategy where there is a conver-
gence between operations and the technology
innovation teams, enabling constant reviews of
systems and platforms in order to streamline
the data that underpins investment decisions.
“Technology also provides an empowerment
opportunity, allow people to get closer to the
technology, and work more agile with the inno-
vation departments in order to become experts
in a particular system,” said Alain Mandy, chief
operating officer, global funds, Wellington
Management.
However, to have a successful data manage-
ment strategy within investment operations, it
requires plugging all the gaps where data could
be misinterpreted or not utilised as effectively.
As investment products become more complex,
data is becoming increasingly valuable to sup-
port these investments.
This is particularly important for risk man-
agement data, which at times, could be lost on
the portfolio managers and their investment
decisions.
“Risk management data is becoming essen-
tial, but there is still a gap in communicating
that information to the portfolio managers.
You need to make sure the risk management
information is put together in way that can be
translated by the front-office and give value to
their investment portfolios,” added Ersilia Mol-
nar, chief operating officer, Muzinich & Co.
Operations teams, however, are still chal-
lenged with conveying the importance of a data
management strategy to the rest of the firm.
Robin Middleton, head of investment oper-
ations at Royal London Asset Management,
highlighted this battle in explaining the value of
data to the key decision makers.
“The challenge is to build a business case
around the data that can influence decision
makers throughout the organisation. It is a
hearts and minds battle, and requires either a
chief data officer or chief technology architect
to hammer home the importance of data when
investment decisions are being made,” said
Middleton.
Buy-side firms are also looking to enhance
governance procedures for data management,
with a focus on best practices, roles and re-
sponsibilities, and accountability for the quality
and accuracy of the data. This is influencing
both how they interact with data, and how they
oversee data provided to them by third-party
outsource providers.
“To aid accurate decision making, you have to
take a step back and look at the data archi-
tecture on an ongoing basis, especially when
consolidating multiple sources of data into
one,” explained Stephen Johns, head of data GX,
EMEA, State Street Global Exchange.
“There is a cultural behaviour change involved
in data management. If this is absent, you
revert back to bad practices and impacts good
decision making.”
Wrap-up
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