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The 5 Technology Challenges of Asset Class Diversification | SS&C Eze

Written by Nicholas Carter | Jun, 13 2024

As they balance optimism and uncertainty, asset managers seek to diversify. Learn how to overcome the challenges they face in doing so.   

In its Global Financial Stability Report, the International Monetary Fund (IMF) presented a mixed update on the state of the global economy.  

Despite a slowdown in global economic activity, the IMF confirms that a global recession has been successfully avoided and that the “soft landing” economists had been hoping for has been achieved.  

And while that is good news, the IMF still has concerns about the speed at which inflation is coming down and what central banks will do to get inflation back on target.   

Moreover, despite compressed volatility, fundamental uncertainty remains elevated across asset markets. Geopolitical tensions and other economic headwinds could lead the IMF to reassess the economic situation in the near future.  

To retain their competitive advantage amid these uncertain outlooks, we see asset managers expanding from their traditional asset classes into a variety of others, including fixed income, digital assets, private credit, and loans. 

However, as they expand into new assets, investment firms must ask this fundamental question: Can my existing technology support these new asset types? 

In this post, I’ll explore the biggest technology challenges asset managers face when adding asset classes – and how to overcome them. 

 

Market Leading Technology Supporting Asset Managers Through Persistent Low Yield Environment

Diversifying asset classes is a powerful strategy in uncertain markets, but it requires robust technology to manage risk and stay competitive.  

By partnering with the right technology provider, asset managers can adapt their systems and optimize their strategies for outperformance.  

SS&C offers comprehensive solutions to meet your diversification challenges. See how Eze’s multi-asset front-office solution supports investment firms in times of change.