The lack of available resources forces asset owners to remain on legacy tech: Survey

More than half of asset owners, including insurers, still utilise spreadsheets for monitoring assets.

Over half (55%) of surveyed asset owners worldwide still use spreadsheets to monitor asset allocation operations, marking an increase from 40% in October last year, according to a Milestone Group survey.

There is a growing reliance on spreadsheets and 'homegrown' solutions among asset owners, including pension funds, public funds, sovereign wealth funds (SWFs), superannuation funds, endowments, and life insurance companies for monitoring and managing their investment portfolio asset allocation activities.

The new research conducted in partnership with ValueExchange, RBC, and Citisoft, titled "Asset Owner Transformation in 2023," showed the trends in the asset hemisphere.

Furthermore, only around 41% of respondents utilise a dedicated portfolio management system to generate a comprehensive view of their portfolios. 

This reliance on spreadsheets is seen as inefficient for managing investment data and adjusting allocations in response to economic and market events.

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Additionally, the survey highlights that 43% of asset owners are seeking to modernize their operating models and the underlying technology.

 Meanwhile, 45% are prioritising enhancements to their data management capabilities in the coming years.

While these findings suggest a collective desire among asset owners to move away from legacy technology and operating models in their asset allocation processes, the research also identifies common challenges hindering their efforts. 

The most prevalent obstacle to successful transformation projects is the lack of available expert resources, cited by 41% of respondents. 

Other challenges include extended project durations before desired returns are achieved (18%) and difficulties in measuring the problem and defining a compelling business case (10%).