At a glance
- Only 23% of managers direct most of their technology budget to new capabilities, PwC found, while 29% put more than 70% of technology spending into maintaining legacy systems.
- On cost, 58% of respondents rank market data among the most strategically expensive infrastructure layers relative to its value.
- For wealth firms vetting asset-manager partners, one due-diligence question is how much of a manager's technology budget goes to upkeep rather than new capability.
Profit per dollar of assets under management at asset managers has fallen 19% since 2018, according to a PwC study of 150 asset managers and 50 infrastructure providers, InvestmentNews reported on Nov. 3.
PwC projects a further 9.1% decline by 2030.
Only 23% of managers direct most of their technology budget to new capabilities, PwC found, while 29% put more than 70% of technology spending into maintaining legacy systems. On cost, 58% of respondents rank market data among the most strategically expensive infrastructure layers relative to its value. Regulatory and reporting systems drew 47%, and core technology platforms 46%.
For wealth firms vetting asset-manager partners, one due-diligence question is how much of a manager's technology budget goes to upkeep rather than new capability. PwC also found 67% of managers name AI and machine learning a top three-year technology priority, while 24% cite data fragmentation and poor data quality as the biggest barrier to scaling it.
Reported by the Numbers desk from InvestmentNews. Published . Corrections