Refining data quality is a top priority for almost 60% of tier 2 and 3 asset managers, closely followed by lowering costs.
Quality control of data was highlighted as a major issue within a study carried out by IHS Markit and Waters Technology, which quizzed asset managers on buy-side data challenges.
The report explained mounting volumes of data are increasing the need for buy-side firms to ensure its accuracy.
“Disseminating it both internally and externally should be of the greatest importance,” it said, to ensure compliance and lower operational risks.
Only 12% of asset managers said three-quarters of the data at their company is considered ‘mastered’.
The research explained that it is important for the buy-side, “not only to maintain their data management strategies but to also monitor performance and use this information to continue to enhance these strategies.”
However, 37% of buy-siders listed ‘budget’ as the biggest challenge in terms of executing on or expanding a data management strategy.
A similar whitepaper published last month said reporting requirements under regulations are driving the buy-side to outsource data functions to manage the complexity of complying with the rules.
The explosion of data handled by asset managers for reporting to regulators, stakeholders and clients, is so complex that buy-side institutions are increasingly seeking to outsource data operations.