As multiasset investing continues to grow, so too have the operational complexities of supporting these strategies. Further, the search for yields has driven a meteoric increase in the use of alternatives and other illiquid assets within these strategies, leading to new operational challenges.
At the same time, the buy side is faced with an increasing volume of complex data from disparate sources, emanating from traditional, siloed "best-of-breed" systems. This disjointed operating model has resulted in additional costs, particularly where alternative investments are concerned, adding to overall operational pressures and leading to strained cost margins.
However, the ability to support multiasset investing can be simplified, and made more cost-efficient, with a technology strategy that embraces the consolidation of asset classes beyond that of fixed income and equities, to include illiquid instruments on a single investment management platform.