The investment management industry emerged from the financial crisis with a bionic arm, as technology began to assist in the risk and investment processes. Managers are looking for an edge as equity returns are expected to be lower, and investors are less willing to pay higher active management fees. The switch to passive has squeezed margins and forced managers to look at technology to both reduce expenses and find alpha.
Sources: Morningstar Direct, Bloomberg LP, eVestment Alliance, Simcorp, Forward Look Inc.
Compiled and designed by Charles McGrath and Gregg A. Runburg