Study identifies a number of issues that make operations a vital factor for success.
According to a recent Ephraim Global study, asset management companies will require complex operational capabilities to complement their business strategies in order to remain competitive in a continuously evolving industry.
“A number of tendencies and trends have made the asset management and investment industry far more complex than it used to be, especially with major trends translating into increasing operational requirements and challenges” said Seth Mantell, Chief Investment Officer at Ephraim Global. “Asset managers currently find themselves competing in terms of operating abilities and what they used to regard as back office activities have become significant factors for success”.
The study shows that investment and asset management companies will require operating systems which are more complex, product agnostic, and adjustable in order to surpass the industry’s challenges and deliver better performance and outcomes, which is tantamount to an evolutionary leap in operating capabilities.
The business aspects as well as the operating challenges examined by the study include:
Increase in competition – in order to set themselves aside from their competitors, managers will require better operating infrastructure to back innovative products and deliver superior assistance and performance.
Sophisticated strategies – Asset management companies will have to improve their infrastructure to manage a broader range of strategies and drivers, and also to efficiently handle business in terms of conventional products categories.
The increase of investment products – as unfamiliar products become more common and managers adjust their strategies accordingly they will require advanced expertise in unconventional products as well as infrastructure in order to efficiently manage them this growing category.
Rising risks – operating systems with strong, adjustable analytics can assist managers in identifying hidden risks in the complexities of strategies and transactions.
Founded in 2005, Tokyo-based Ephraim Global is an international asset management group serving clients around the world. The company offers a wide range of financial advisory and planning services, bond and mutual funds, diversified asset portfolios, pension plans and account management for private and institutional clients alike, focusing on diversification, extensive research and a risk-aware investment approach.
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