Smaller asset managers should consider using an outsourcing platform to remain competitive, according to Edmond de Rothschild Asset Management (Luxembourg) CEO Serge Weyland.
Weyland told Citywire Switzerland about the launch of the company's new portfolio management and distribution management platform, EOS (Extended Outsourcing Services).
He believes it fills a gap for asset managers overseeing between €1 billion and €10 billion, allowing them to stay competitive.
He said: 'I think, going forward, the whole financial industry will be much more about data and how you make use of data. This is where asset managers will differentiate – their ability to use data via AI and algorithms.
'The first step you need to take is to bundle the data you have. This is what we're offering with such a solution. We are lifting the barrier for smaller managers.'
The platform offers two divisions: portfolio management and distribution management. It covers compliance, simulated trading, online portfolio valuation, performance analysis and data management.
'Our sweet spot is the high-conviction, active managers who would typically make use of a number of systems to manage their portfolios. It's much too expensive, so these smaller firms often rely on a cheaper platform which lacks a full range of instruments,' Weyland said.
He also noted that platforms allow smaller asset managers to level the playing field.
He said: 'It's the ability to leave being a small boutique manager behind to become more institutional. With a platform, managers can really talk to other institutional players.'
EOS also provides ESG analysis, and Weyland noted that it will continue to adapt to needs that arise as client demand changes and regulation increases.