Canadian Asset Managers Focused on Building Talent and Data Operations In-house, Diverging from their Global Peers, According to New Research from CIBC Mellon

Asset managers are harnessing the tools, expertise, and infrastructure needed to turn data into actionable insights that can drive growth in investments and their investor base. 

TORONTO, March 17, 2022 /CNW/ - In a new research study covering 200 asset managers from Canada and around the world, our global enterprise explores fundamental changes in the asset management industry as institutional investors pursue innovation for a competitive advantage.  

The first installment of, "Data Transformation in Asset Management: Canada vs. the World," draws from BNY Mellon's global insights and our local experience to contextualize selected areas where Canadian asset managers are leading or trailing the global consensus in terms of their data strategies.

"Data is increasingly being recognized as one of the most important asset classes for institutional investors – as an operational tool, as a source of competitive investment intelligence, and even as an investable asset in its own right," Darcie James Maxwell, Head of OMNI Digital Services, Canada.

"The pandemic remote environment redefined the market landscape and has accelerated existing trends. Firms will need to draw on functional knowledge as well as data science techniques to create and proliferate needed capabilities," said Joe Lacopo, Vice President, Relationship Management and Segment Co-lead, Asset Managers.

Download the Chapter 1 of the study at www.cibcmellon.com/DataTransformation clients can also contact their CIBC Mellon relationship manager to learn more or arrange a detailed discussion of the findings. 

Additional findings include:

• For Canadian asset managers, the top use cases for deploying data analytics are performance and risk management (55%) and asset selection and allocation (45%).
• Like global peers, Canadian managers indicated plans to outsource their distribution, but they diverge from the global average around appetites to outsource their trading activities – perhaps reflecting Canadian firms' view that their in-house trading operations are driving value thanks to their in-house talent.
• Across regions, about half of respondents said the main barriers to managing data are: obtaining real time, high quality data, and difficulty aggregating across fragmented infrastructure to create single, centralized source.
• 78% of respondents said they plan to outsource their data operations. However, only about half of Canadian asset managers are planning to explore or expand their outsourcing relationships in data operations.

About CIBC Mellon

CIBC Mellon is a Canadian company exclusively focused on the investment servicing needs of Canadian institutional investors and international institutional investors into Canada. Founded in 1996, CIBC Mellon is 50-50 jointly owned by The Bank of New York Mellon (BNY Mellon) and Canadian Imperial Bank of Commerce (CIBC). CIBC Mellon's investment servicing solutions for institutions and corporations are provided in close collaboration with our parent companies, and include custody, multicurrency accounting, fund administration, recordkeeping, pension services, exchange-traded fund services, securities lending services, foreign exchange processing and settlement, and treasury services. As at December 31, 2021, CIBC Mellon had more than C$2.6 trillion of assets under administration on behalf of banks, pension funds, investment funds, corporations, governments, insurance companies, foreign insurance trusts, foundations and global financial institutions whose clients invest in Canada. CIBC Mellon is part of the BNY Mellon network, which as at December 31, 2021 had US$46.7 trillion in assets under custody and/or administration. CIBC Mellon is a licensed user of the CIBC trade-mark and certain BNY Mellon trade-marks, is the corporate brand of CIBC Mellon Global Securities Services Company and CIBC Mellon Trust Company, and may be used as a generic term to refer to either or both companies. www.cibcmellon.com

Media Contact:

Alexandra DeCata, Corporate Communications, CIBC Mellon, 416-643-6126, [email protected]

SOURCE CIBC Mellon

Media Contact: Alexandra DeCata, Corporate Communications, CIBC Mellon, 416-643-6126, [email protected]