The Asset Owners Awaken: A Sleeping Giant Demands a Technology Upgrade

by Jay Wolstenholme, October 28, 2016
Industry Trends
Global

Abstract

Celent has released a new report titled The Asset Owners Awaken. The report was written by Jay Wolstenholme, senior analyst in Celent’s Securities & Investments practice.

Current demands on institutional asset owners have never been greater, funding levels must be met; portfolio performance, risk, and analytics reports must be presented to investment committees, the board, and clients; and all regulatory requirements must be delivered accurately and timely. On an institutional level, asset owners need to have a full oversight of the aggregate of their investments in an updated electronic digital format. Manual reports are no longer sufficient.

The low-rate economic environment has forced asset owners to extend out on the risk curve. Many asset owners utilize external asset managers for specialized asset allocations in alternative investments. Up and down the AuM level of asset owners, there is a wide range of internal asset management and external asset management.

“Whether an institutional asset owner is solely using external asset managers or there is a mix, the owner needs to aggregate all portfolios, not only for internal analysis and risk assessment, but also for reporting to regulatory bodies and the ever-increasing number of interested parties that need accurate information,” says Wolstenholme.

Prudent fiduciary oversight has always been the topmost concern for asset owners, but as the investment landscape has become much more complex, legacy workflow methods have become inadequate. The combination of internal investment committee mandates, increased regulatory requirements, internal analysis, and increased demand for outward-facing digital reporting are all reasons that asset owners are revaluating and perhaps reengineering their toolsets.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

 

Key Research Questions

3

Asset Owners and the Buy Side

4

 

Insurance Asset Owners

6

 

Pension Funds

7

 

Corporations

8

 

Family Offices

8

Asset Owner Technology Options

9

 

Aggregation for Regulatory and Fiduciary Oversight

10

 

Reporting and Digital Delivery

11

Asset Owner Technology and the Future

14

 

Sourcing Options

15

 

Multidevice, Multichannel Digital Distribution

16

 

Open Architecture

17

Conclusion

18

Leveraging Celent’s Expertise

19

 

Support for Financial Institutions

19

 

Support for Vendors

19

Related Celent Research

20

Sign in to download reports and access personalized information