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Key takeaways: How firms can fight fee compression and passive investment

Date: February 7, 2019

Our latest blog highlights some key takeaways from an interview with Damian Handzy, Global Head of Risk at StatPro, at the 2018 FTF Performance Measurement Europe Conference in London. 

What are the major trends in asset management analytics today?

  • Asset managers are facing increasing pressure from fee compression and passive investment
  • Firms are looking to analytics to differentiate themselves 
  • Outsourcing analytics to offset fee compression

Fee Compression and Passive Investment - quoteHow are the most sophisticated asset managers positioning themselves for the next five years?

  • Adding passive investments to their portfolios in an effort to widen their offering
  • Increasing the amount of information available to clients in an effort to justify the value of active management

What demand is there from end clients for a self-service approach?

  • Most clients want some sort of customization, whether it is done in-house or by a vendor
  • To some clients, customization itself means not having to customize anything

Are small and mid-sized asset managers building new digital capability to interact with clients or are they using third party services?

  • Mid-sized and larger asset managers typically prefer to use in-house resources, however fee compression has caused many of these firms to outsource when cost effective
  • Smaller asset managers typically prefer outsourcing as they have less resources at their disposal

What are the most exciting things going on at StatPro these days?

  • Fixed income attribution has been implemented into StatPro Revolution and will continue to be augmented in 2019
  • Factor analysis and factor attribution are being implemented and will round out the equity side of our risk capabilities
  • Our acquisition of UBS Delta is coming to market this year with very sophisticated fixed income curves

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