Key findings
Inflation impacting asset allocation
Asset allocation strategies must continue adapting to shifting macroeconomic conditions. Among our respondents, global inflation rates emerged as the most influential factor shaping their current investment decisions.
Predictability and adaptability a challenge
Heads of trading identified their biggest challenges in adjusting asset allocation strategies in response to global events: predicting the duration and severity of such events (46%), implementing changes quickly enough (45%), and balancing risk and return objectives (42%).
T+1 settlement puts pressure on liquidity management
With the shift to T+1 settlement now in effect, its impacts are beginning to materialize. For 28% of respondents, the primary area of impact has been liquidity management. Only 1% reported that the change has affected operational efficiencies, liquidity management, and risk exposure collectively
Advanced tech helps regulatory pressures
Regulations continue to play a pivotal role in shaping investment strategies, but advanced technologies are increasingly seen as part of the solution. For 62% of respondents, their firm is leveraging data analytics for risk modelling and scenario testing to help mitigate regulatory impacts.
Generative AI gains traction through synthetic data
Firms are now using generative AI solutions in key processes, and the most popular way in which firms are using the technology is to create synthetic data to augment training datasets, according to 51% of our respondents.
