In Association with SimCorp, WBR Insights Brings the Latest InvestOps Global Report
Another challenging year beckons. Market volatility, uncertainty around inflation and elevated geopolitical risk are issues very much still with us, while unravelling globalisation and the escalation of conflict in the Middle East will provide challenges for 2024.
In our third annual InvestOps Global Report in collaboration with SimCorp, WBR Insights dives deeper into how directors of investment are navigating this perfect storm of risk. How can firms embrace a new operating reality with more simplicity, agility, and choice?
In Q3 of 2023, WBR Insights surveyed 200 of the top Directors of Investment Operations. To get a true global reflection of the industry, we targeted respondents from across North America, EMEA and as well as APAC. The report comprises three sections: looking at how respondents are striking a balance between cost control and gaining a competitive edge, the evolution in operating models and the technological innovations being brought to the table, and how firms are striking a balance between cost control and gaining a competitive edge?
The critical question for investment leaders: What are their top strategic priorities when it comes to guiding their technology and operations investments in 2024? Our survey revealed more than half the respondents are working on improving operational efficiency closely, while 46% are prioritising controlling operating costs.
The surge in interest in these areas compared to the previous year's survey underscores the growing challenges that companies confront in streamlining operations and staying competitive amidst the prevailing economic and geopolitical uncertainties. Given this context, it is unsurprising that prioritising the enhancement of customer experience continues to be among the top three goals across all three regions.
As was the case in the 2023 InvestOps report, data management is at the forefront of mind globally, with nearly half of respondents planning initiatives to improve data and operations support for total portfolio investment strategies in 2024. New to this year is an increased appetite to engage a service provider for operational processes and a clear focus on integrating new technologies with existing platforms.
WBR Insights’ research showcases exactly how heads of investment throughout the world are looking to evolve their operating model for 2024. A significant number (45%) are currently reviewing their existing model but investigating, starting or actively changing their systems.
When asked to describe their ideal operating model, each response from all 200 surveyed showcased the importance of robustness, resilience and risk reduction. From effective risk KPIs to easy scalability alongside future readiness and innovation, the ideal operating model is being painted as both agile and cost-effective.
For the second year running, ESG investing has been recognised as the area presenting the most significant prospects for technological innovation, notably in North America. In EMEA and North America, there is a distinct emphasis on business intelligence as a priority area, whereas respondents from APAC pinpointed data management as the business domain with the highest innovation potential.
No one-size-fits-all formula for success exists. Each buy-side firm must consciously discern what aligns with their unique identity and sustains their competitive advantage. Essentially, it boils down to defining the core elements and distinguishing them from non-essential aspects, a crucial step in fostering business growth, retaining top talent, and strategically mitigating operational risks by entrusting routine operations to a provider adept at the task.
Yet, in a world where markets and technological advancements sprint ahead, merely swapping one system for another or enhancing efficiencies for immediate crisis management falls short. With a multitude of storms on the horizon, the imperative lies in the agility to pivot in response to market headwinds and technological leaps. This adaptability remains the linchpin for buy-side firms, not just to weather the challenges, but to stay ahead in an ever-evolving landscape.
Closing Remarks
Our third annual global InvestOps Report sponsored by SimCorp will be released in January and will showcase more of the bold strides being made by the industry. With excellent contributions from companies such as Janus Henderson, Zurich Insurance and Mercer, it is clear the industry is committed to unlocking the potential in their operating models and overcoming the tough challenges head-on.
To learn more about how heads of investment are evolving their operating models and gaining a competitive edge, download the latest InvestOps Report here!
https://investops.wbresearch.com/downloads/embracing-a-new-operating-reality