Outsourced Trading Improved 83% of Asset Managers’ and Asset Owners’ Investment Performance, According to State Street’s Global Outsourced Trading Market and Outlook Survey
The survey reveals compelling benefits for those outsourcing some aspect of their trading and its potential to enhance investment performance. Notably, the vast majority of current users, some 85% of respondents from
Through the acquisition of
“We have long believed that providing excellent service starts with knowing our market better than anyone else. With this ground-breaking research, we hope to shed light on the emerging move towards outsourced trading and provide clarity regarding the significant benefits it can offer,” said
Additional key takeaways and findings from the survey include:
- Current users of outsourced trading consistently report benefits such as increased efficiencies (reported by 55% of current users), reduced costs (reported by 33%), and improved investment performance (more than 80% reported improved investment performance to some degree).
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Among these early adopters, who report clear and tangible benefits, satisfaction is very high with 79% saying they are either ‘satisfied’ or ‘very satisfied’. This rises to 83% in EMEA and 81% among very large funds (those with AUM over
$50 billion ). - Potential users have different views and reservations about outsourced trading compared with actual users. Potential users are most concerned about cost effectiveness (61%), loss of control over trading activities (56%), and a lack of understanding about the benefits of outsourced trading (56%).
- Flexibility, customization, and technical integration capabilities are key attributes sought in outsourced trading partners. Users view their outsourced trading providers as strategic partners to the business, extending beyond mere transactional support to contribute to the overall efficiency and performance of investment operations.
“The findings from this survey highlight the potential and the real value outsourced trading is bringing to the industry, and we are well-equipped to help clients understand the offering and help with the integration,” said
Please click here to view the complete survey, and here to learn more about State Street's Outsourced Trading capabilities.
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