Paul Roberts, CEO of Milestone

Milestone Group, provider of technology for the fund management sector, has launched a study revealing that investment portfolio complexity has been increasing dramatically.
The survey, which looks into into the fiduciary management and OCIO industries, has concluded that this trend is set to continue, primarily driven by competition in the market.
More diversified investment portfolios have led, it claimed, to operational complexity, leaving managers to address operational control and efficiency challenges across their businesses while balancing investment risk and return. The survey also concluded that technology is essential to managing this sort of operational risk.
“Some of our findings correlate with a normal market development and maturation cycle, such as margin pressure and increased use of technology to support scale,” said Paul Roberts, CEO of Milestone Group. “While others seem more tightly coupled to the nature of the OCIO business itself, such as levels of alternative asset usage and customization.”
The findings, gathered from respondents across OCIO, fiduciary and delegated investment practices indicated 89% expect that the OCIO market will continue to increase in size, 89% expect increasing pressure on margins over the next five years, 83% indicated that their firms’ use of alternative assets, such as private equity and real estate, is increasing while 64% of respondents report that between 81% and 100% of their solutions are customized.

by Guy Matthews
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