Mar 7, 2023

Alternative Data for Investment 2023

We commissioned research to discover insights from 100 discretionary portfolio managers and analysts on the application of alternative data in investment management.

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The Demand for alternative data as an integral part of alpha generation for institutional investors continues to accelerate. Driven by the widespread adoption of mature datasets as part of baseline research, investment professionals are now seeking more diverse datasets as well as sophisticated technology and analytics to work with.

In January 2023, we commissioned the market research company Pureprofile to conduct a study with 100 discretionary portfolio managers and investment analysts, to capture their views on alternative data. The survey respondents are based in the US, UK, Singapore and Hong Kong, and collectively manage ~$969 billion in assets.

Our report finds that:

  • The inclusion of alternative data as a source for insights is now mainstream for institutional investors.
  • The majority of respondents expect their organization’s use of alternative data to grow strongly, measured by both the number of datasets and aggregate spend.
  • As spend on alternative data continues to grow, respondents expect funds will look increasingly to third-party technology providers to solve the challenges of combining and analyzing alternative data at accelerating scale and pace.

Key Findings

  • 96% of portfolio managers and investment analysts surveyed are already using alternative data to support their strategies
  • 90% of investment professionals expect the use of alternative data by funds to increase between now and 2025
  • 91% of investors expect their use of third-party software systems to analyze alternative data to increase between now and 2028

To read the full report and discover insights on alternative data in investment management, click below.

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Exabel is a financial technology company based in Oslo, London, and New York.

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