Institutional investors expect to be busy investigating technology in the next 12 months, with 59% considering new technology and 44% planning to review and potentially replace existing technology, according to a survey by the Institutional Limited Partners Association.
The increasing complexity of investors' alternative investment portfolios drove technology decisions for 45% of survey respondents. Some 23% indicated they invested in technology due to the size of their staff per manager relationship and 19% invested in technology because they were expanding into new investment vehicles or strategies.
The survey in July of about 340 ILPA members also revealed that 63% of respondents indicated that they based the success of a technological solution on whether it improved the investor's investment decision capabilities. Another 27% determined a technology's success on whether it decreased professional time devoted to administrative tasks and 10% based it on cost containment.