Yesterday I touched on Vanguards decision on their research unbundling after mifidII.
Markets in Financial Instruments Directive, known as MiFID II, comes into force in January 2018 and will asset managers in the EU will need to fundamentally review how they get and work research. All told this is a huge shift for the traditional managers. On the upside it’s an entry point to alternative approaches including greater use of quants and big data.
BlackRock Inc. as far back as March let the world of Asset Management know all about their plans to to bolster passive investing with even more “stock-picking automation” that employed (corny as it sounds) “big data” and robots. Meh.
BNP Paribas only a few months back put out the announcement that they will be pushing heavily into the area of strategic investment in the AM space. Full realese here from May. Among others their options for better services being investors Revolves around pure digital initiatives like partnering with fintechs( I guess where they dont have the expertise or interest in developing in house) in areas such as robo-advice, smart coding and artificial intelligence. As well as battle hardened PR pieces like ESG and other sustainable funds.
Man Group Plc on the other hand seems to be having a cold shower around their alternate incubator quant business. It has been less than a year up an running only to be shut down the unit after deciding to focus on other strategies. Synonymous with losing a tonne of money on a the experiment. Moral of the tale.?
Deutsche Bank AG went and got their own research unit. With the fantastically named dbresearch, which has more to do with Research unbundling than anything else. are among many firms ramping up their quant operations by adding new mostly tecnology resources and personnel to ensure they can come up with new ways to leverage more efficient and dare say compliant algo models and data science into their research. The same Deutsche Bank predicted back in March that 79 per cent of investors are putting up funds to systematic strategies. Just as above.