May 25, 2021 | Stamford, CT – Growing numbers of investment managers and asset owners are using Research Management Systems (RMSs) to streamline research and manage multiple data sources employed by analysts and portfolio managers in their investment processes.

More than a third of U.S. asset managers and asset owners participating in a Q1 2021 Coalition Greenwich study are using an RMS, up from 26% in 2019.  In addition, asset managers are employing RMSs to help manage content from an average of 20 research providers, with some larger firms employing double that number. 

Although MiFID II is causing the number of research providers to drop, complexity is on the rise as investors seek new data sources such as environmental, social and governance (ESG) data and expand their use of alternative data. Incorporating these new sources will add additional difficulty to the already daunting task of research management—a process that includes data procurement, workflow standardization, consumption tracking, compliance monitoring, and other functions. 

“As research analysts and portfolio managers often collaborate virtually, many firms realize that traditional tools such as spreadsheets and shared drives are no longer sufficient to accommodate expanding datasets,” says David Easthope, Senior Analyst for Coalition Greenwich Market Structure & Technology and author of Research Management Systems: Powering Productivity for Modern Investment Management.

Institutional investors that adopt an RMS report a positive impact on productivity and compliance. Almost 70% of study participants report an increase in productivity since implementing an RMS and 55% experienced improved compliance. 

“It’s not only asset managers that benefit from a robust RMS,” says David Easthope. “Asset owners such as pensions and endowments & foundations are increasingly adopting these tools to help streamline manager due diligence, process management, workflow, vendor tracking, and evaluation.”