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Asset managers to hire data chiefs after tech re-think

Data linesMany fund managers are to recruit chief data officers after the Covid-19 pandemic caused firms to focus on fixing data problems, research suggests.

According to a study by Alpha FMC, a consultancy, 19% of firms surveyed will make the chief data appointments and the research also found that just over half will adopt enterprise data models.

Alpha’s report, ‘2021 Data Strategy & Operating Models’, found that the majority of firms are focused on implementing firm-wide data initiatives in recognition of a lack of enterprise-wide data management in many firms. As many as 68% of respondents said that data governance remained siloed by function within their companies.

But the focus on firm-wide data projects is likely to come as the expense of experimenting with alternative data. The study found that alternative data usage had fallen since last year with social media and the web being the only sources still commonly used.

The survey also revealed some familiar frustrations among asset managers about data capture from third-party sources. The rising cost of market data was one, and the lack of consistency among ESG data providers was cited by 80% of respondents.

The report surveyed 38 asset managers with combined assets under management of £7.8 trillion.

© 2021 funds europe