The European Union’s General Data Protection Regulation (GDPR) comes into effect in less than 100 days’ time, and many asset managers will be racing to comply with this latest regulation to hit the industry.
GDPR will regulate the processing of personal data and protection of individual privacy rights, including business contact information. Much of the media coverage has focused on data storage and handling security breaches, but GDPR also poses a significant risk to firms’ ability to communicate with investors and consultants about their products and solutions.
This means your presence in industry databases becomes increasingly important to reach investors and consultants as GDPR further restricts marketing to prospects.
GDPR can feel daunting to those addressing the challenges it poses. However, where there is change, there is opportunity, and smart firms will capitalise on GDPR to gain a competitive advantage, including through their use of investment databases.
Here are four steps you can take now to overcome GDPR challenges and maximise your presence in fund manager databases.
1. Review your data in eVestment and other investment databases
How does your data look to investors in fund manager databases? Are all your key products fully populated with key risk/return metrics, holdings data, profile information, etc.? Are your products failing screens from investors and consultants due to missing data? With GDPR, it is even more essential to understand how you present online to investors who may be researching strategies in your domain.
2. Improve your data population
Investors and consultants are continually researching the marketplace for interesting strategies, and to see how their current external managers stack up against peers. You want your firm to be as visible as possible, so look to populate eVestment and other key databases as fully as you can. You don’t want to miss out on mandate searches because of missing data.
3. Measure your strategy versus your peer group
How complete are your product profiles versus peers? How extensive is your coverage compared to your key competitors? It may sound obvious, but firms with the most strategies and the best data population tend to get more views by investors and consultants. GDPR will add another dynamic to an already competitive marketplace, and you will want to be well-positioned.
4. Know where interest is coming from
In eVestment, you can see where demand could potentially come from across the globe. You can also see which asset classes are gaining interest in terms of views and asset flows. By leveraging these insights, you can adjust your distribution strategy accordingly to focus resources on the best opportunities.
Download your copy of the Distribution Excellence Framework whitepaper to learn how integration of the five disciplines can yield greater results for asset management firms through better alignment, communication, goal setting and more realistic self-awareness at the firm level.
Turn GDPR challenges into an opportunity
GDPR poses challenges to pretty much any company doing business in Europe, but it doesn’t have to be a downer. Adopting a positive approach will help you realise the opportunities GDPR presents, and maximising your presence in databases – and the insights they can provide – should be a key component in your strategy for handling GDPR. GDPR may be a data protection initiative, but that doesn’t mean you can’t take the initiative to use data to protect your business.