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This research explores how investment management firms are using data analytics technologies to inform and streamline investment processes. It covers how firms can best organize to support data analytics, the role IT and data management play, and the skill sets and tools that can help.
We include an overview of the technologies that are in use and available that support data science and analytics, including overviews of solutions from the following vendors: 1010data, Alteryx, AnswerRocket, Amazon SageMaker, Azure Synapse Analytics, Bloomberg BQuant, Databricks, Dataiku, Datameer, DataRobot, Denodo, FactSet, Google Cloud Platform, Jupyter, KNIME, MemSQL, MLflow, Power BI, Qlik, RapidMiner, Refinitiv, S&P Global Market Intelligence, SAS, Snowflake, Tableau Software, and Zepl.
CutterResearch presents part one of a four-part series on asset management trends that provides an overview of key areas of focus during these transformative times in asset management.
In an environment of shrinking revenue due to lower fees and increased costs, shifting client preferences, regulations and consolidation, and advancing technology, successful asset managers will be the ones that can transform. How? By innovating to create growth opportunities, differentiating to retain clients, and maximizing efficiency by leveraging data, services, and technology.
The purpose of behavioral analysis in investment management is to examine active investment management decisions and create a plan to improve behaviors detrimental to alpha generation. This whitepaper offers an introduction into the pressures investment managers are under that are driving them to use behavioral analysis, common types of behaviors that jeopardize alpha, and a summary of providers of behavioral analysis software and services.
Behavioral analysis service providers highlighted include: Alpha Theory, Cabot Investment Technology, Essentia Analytics, and Inalytics.
This report contains the results of Cutter Associates research on governance, risk, and compliance (GRC) for investment management. It includes information on industry issues and trends, challenges and best practices, and GRC systems.
The research focuses on how investment management firms are designing effective and efficient GRC approaches that align people, processes, and technology with a firm’s risk appetite, internal policies, and external regulations. It also explores the vendor landscape and provides an overview of some GRC vendors and their system capabilities.
We summarize the GRC capabilities of the following vendors and products: 360factors: Predict360, CAMMS Group: cammsrisk, CURA, Dell Technologies: RSA Archer GRC , Ethidex: Compliance Office, Galvanize: HighBond, IBM: OpenPages with Watson, LinkResQ Ltd: CalQRisk, LogicGate, LogicManager, MetricStream: M7, NAVEX: Lockpath Keylight, Onspring Technologies, ProcessUnity, Protecht Group: Protecht.ERM, Refinitiv: Risk Management, Resolver: ResolverCore, SAI Global, SAP: SAP GRC, Wolters Kluwer, and Xactium.
This report on alternative investments provides information about solutions that can be used at various stages of the investment lifecycle, including systems that support contact management, due diligence, deal pipeline management, document management, portfolio construction, portfolio monitoring and analysis, and operational support.
This research includes an overview of the vendor landscape, insight into CutterResearch member system usage and practices, and detailed reviews of systems with varying functionality to support direct and indirect investments in infrastructure, private equity, and real estate. This report features reviews of Backstop Solutions, BlackRock (eFront), Burgiss, Dynamo Software, FIS, Mercatus, SimCorp, and Yardi.
This research investigates environmental, social, and governance (ESG) investing, the state of the market, and challenges experienced by asset owners and asset managers. It profiles third-party products that offer ESG data, ratings, evaluation, and services.
The research looks at the different forms of ESG investing, and practices of CutterResearch member firms, the industry bodies involved, and drivers behind the recent growth We profile different types of service providers offering ESG data, ESG ratings, specialist portfolio evaluation, and proxy voting advice.
We provide descriptions of the following providers of ESG data and services: Arabesque S-Ray, Beyond Ratings, Bloomberg, Carbon Delta, Ceres, Climetrics, CSSP: yourSRI, FactSet, Four Twenty Seven, FTSE Russell, Glass Lewis, ISS, Morningstar, MSCI ESG Research, Refinitiv, RepRisk, RIMES, S&P Global Markets Intelligence Trucost, State Street ESGX, Sustainalytics, Truvalue Labs, Verisk Maplecroft, Vigeo Eiris.
Investment management firms use predictive analytics to optimize processes and to identify early warnings of process anomalies. Predictive analytics use historical data to predict future outcomes based on current data, and use machine learning to create models that help identify patterns and behaviors that predict risky situations. This research explores how Operations teams can leverage predictive analytics and models to provide much earlier warnings to predict and prevent operational loss, and presents some options on how to get started.
Steady growth in investors’ interest in environmental, social, and governance (ESG ) issues means additional considerations in the investment process, demands for more and better information, and pleas for standards. This paper explores aspects of ESG investing, including industry initiatives, changing regulations, the focus on climate change, and debates on investment performance.
Allocations to alternative assets continue to grow, with a recent Preqin report estimating that alternative investments will reach USD 14 trillion worldwide by 2023. These assets often deliver higher returns compared to public assets and they can help to manage downside risk, but as more investors increase their allocations to private equity and real estate, other firms are looking to new areas to invest. In this paper, Cutter Associates discusses two types of investments: infrastructure, including Public-Private Partnerships (P3) investment in the United States, and music royalty rights.
In this paper, Cutter Associates explains the background, characteristics, and types of cryptocurrencies, as well as some of the reasons institutional investors are interested in and skeptical about investing in them.
This research into Managed Data Services (MDS) provides an overview of the types of data management services available, the factors driving investment managers to consider them, and how firms currently use them. It includes a summary of a broad range of MDS providers and services tailored to investment management needs.
The research examines the services member firms use to support their data management efforts. It includes discussions of the various types of data that services can manage, such as market and reference data, operational data including holdings and transactions, and derived data such as performance and risk. We profile different types of managed data service providers including standalone MDS providers, EDM and other software vendors / platform providers who include managed data, and data service providers.
We provide descriptions of the following service providers: AIM Software GAIN Managed Data Service, Asset Control Managed Data Service, Axioma, BlackRock Solutions Aladdin, Bloomberg PolarLake Data Management Utility, Broadridge Managed Data Services (BMDS), Charles River Data Service and Data Management Service, Clearwater Analytics, Crux Informatics, Eagle Managed Services, Electra Data, FactSet Portfolio Services, Fidelity Corporate Actions Solutions (FCAS), GoldenSource OnDemand, IHS Markit EDM Managed Services, Markit Corporate Actions (MCA), IVP Managed Data Services, Kuberre Systems, Morningstar, RIMES Managed Data Service, SmartStream Reference Data Utility, SS&C Advent Managed Data Service, SS&C SVC, State Street DataGX, and STP Investment Services.
This research explores the supplier landscape, industry trends, and investment management practices related to managing benchmark and index data. The research summarizes current challenges faced by investment managers and discusses their areas of focus for improvement.
This research includes descriptions of the originators and redistributors commonly used by member firms. The following providers are among those described in this report: FactSet, FIS, FTSE Russell, ICE Data Services, IHS Markit, J.P. Morgan, MSCI, Refinitiv, RIMES Technologies, S&P Dow Jones Indices, STOXX, and Wilshire.
This report on asset allocation provides information about solutions that can be used at various stages of a top-down investment process, from strategic design and evaluation through to the implementation of multi-asset and other custom strategies.
This research includes an overview of the vendor landscape, insight into CutterResearch member system usage and practices, and detailed reviews of systems with varying functionality including support for stochastic forecasting and optimization, data collection and aggregation, analysis and simulation, cash allocation and rebalancing, limit compliance, and instruction management. This report features reviews of ACA Technology Solutions NorthPoint IMS, AlternativeSoft, Axioma Portfolio, BlackRock Solutions Aladdin, Calypso, Ledgex, Matrix, Milestone Group pControl Asset Allocation, Ortec Finance GLASS, SimCorp Dimension, Solovis, Willis Towers Watson STAR RW.
CEOs today have higher expectations for CMOs and their teams. They want marketing to do more to attract new clients, serve existing clients, and grow AUM.
This report contains the results of Cutter Associates research into the age-old debate between all-in-one and standalone (best of breed) solutions.
This research provides background on the industry drivers, member practices, and challenges related to decisions about their system architecture. It also explores how different types of software and service providers view this dichotomy, and how the landscape may be changing.
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