Beacon Consulting Group, a strategic and operational consulting firm to the investment management industry, released the results of its Middle Office Survey, a survey of senior investment operations executives from over 40 investment managers. The survey is a follow-up to “Opportunities in the Evolving Middle” office, Beacon’s initial review of the middle office.
“Investment managers tell us that the middle office is predominantly about data – capturing it, reconciling it, owning it, and making it useable and available throughout the firm to enhance decision making,” said Keith Brown, president of Beacon Consulting Group. “The survey results indicate that enterprise-wide access to quality, timely data is a critical component in driving operational efficiency, asset growth and investment performance.”
Beacon Consulting Group has observed that the middle office has transformed into a critical component in the investment management lifecycle. Opportunities abound for service providers who take the investment manager’s perspective and become an extension of the investment manager’s operating model by understanding the objectives and offering the customization to support these objectives.
The survey highlights the strategic importance of various aspects within their middle office. The survey surfaced distinct priorities from firm to firm in terms of technology, process and or organizations improvement opportunities. Investment managers that choose to retain middle office functions in-house can capitalize on opportunities to integrate process improvements and/or leverage new technology systems or ASP/SaaS models into the middle office. Those considering outsourcing are increasingly viewing it as a strategic alternative.
