In this research, we explore how digital innovations are changing the ways that investment teams generate ideas, form views and analyse portfolios. We also examine the organisational implications of these changes.
This research paper is a continuation of our focus on digital capabilities. Other papers that have considered how ‘digital’ is enabling change in investment management include Digital CRM.
The goals of this paper are to:
Describe developments in AI and big data and the opportunities that they provide
Outline the nature of these opportunities and their limitations
Show how portfolio managers are using new techniques and tools
Examine the drivers of differing levels of innovation across firms
Give examples of firms innovating in this area
Describe the organisational issues that arise as a result of this innovation
Outline the main considerations for a medium to large sized firm looking to make a start in this area
We aim to cover the following areas:
The developments in AI and big data that are enabling innovation
Innovation in idea generation, research and view formation
Innovation in portfolio analytics
Organisational issues around this innovation
This research specifically excludes the following areas:
Execution of portfolio transactions
Innovation in the marketing of investment products
Managing big data and data projects
Methodology and Sources
The information included in this report has been derived from a number of different sources including interviews with CIOs, portfolio managers, quantitative managers, alternative data suppliers, portfolio analytics suppliers and investment consultants. We would like to thank all those that took part in the research for their contribution.
In this process we:
Interviewed members to understand what firms have been doing and are considering in this area
Interviewed other investment managers that have been active in this area
Interviewed alternative data and portfolio analytics suppliers to understand their propositions to asset managers and how these propositions are being used
Interviewed investment consultants to understand their attitude towards the opportunities and potential pitfalls from innovation in this area
Worked with Accenture colleagues specialising in big data and AI to understand their applications in other industries
A detailed research report on leading practices and operating models for supporting digital innovation in portfolio management.
Senior staff developing investment research.
Senior operations and IT staff responsible for front investment operations, data management and research.
Firms interested in deepening their knowledge on this topic and exchanging ideas with industry peers.