Institutional asset owners are sitting on vast troves of data – but extracting value from that data is more challenging than ever.

In addition to the traditional asset classes of equities and fixed income, many pension funds, sovereign wealth funds, and endowments are moving into less liquid and transparent markets such as private assets, and they may also need to manage under an environmental, social and governance (ESG) framework, both of which have their own unique data considerations.

“It’s very important for asset owners to improve their ability to manage a vast variety of datasets in a timely and cost-effective manner, in order to make better investment decisions,” said Elaine Tan, Head of Asset Owners & Asset Managers Client Lines for Asia Pacific, Securities Services, at BNP Paribas. “This is not a simple task.”

Tan also highlighted some of the key aspects to asset owners’ data challenge: the lack of standardisation and uniformity to the data; fragmentation of data source across platforms, systems, service providers, and locations; and the increasingly complex and dynamic regulations across markets and geographies.

The implication of getting data right goes beyond investment decisions. “Inaccurate or incomplete data will limit asset owners’ ability to manage various risks, such as climate related risk, cybersecurity risk, market volatility and so on,” Tan said. “Comprehensive and timely data is needed to identify, assess, and mitigate these risks effectively.”

More Rigor Needed

While market participants have been testing various data-driven solutions to improve operational efficiency, the overall industry agrees that a more rigorous approach in using data is needed in order to generate new ideas.

“In the past, asset owners focused only on collecting basic financial data for performance measurement or regulatory compliance,” Tan said. “This historical data was often presented in a static format. This is no longer sufficient, and client need real-time and flexible data to support decision making and risk management.”

Asset owners are increasingly focusing on leveraging technology, not only for meeting reporting requirements, but also improving overall operations and data quality. “Leading institutions have invested in modernising and future-proofing their IT foundation, upgrading core investment platforms, and deploying AI tools to improve data processes,” according to a McKinsey report, published in January 2025. “They have also made data a strategic asset instead of being merely a by-product of operations.”

The McKinsey report suggested that institutional investors’ effective deployment of technology and AI could generate a return on investment (ROI) of more than tenfold across three domains: investment returns, operational efficiency, and risk management.

Data Quality

Tan noted asset owners are deploying artificial intelligence and other advanced technologies to extract more value from data and also using data management platforms to automate complex workflows, enhance data accuracy, and improve operational efficiency. “Advanced technology can identify inconsistencies and discrepancies in the data, and it can apply predefined rules to clean, standardise, and improve the quality of the data,” she said.

Facing a complex geo-political environment, Asset Owners are contemplating how technology and service providers can support them in defining a comprehensive, total portfolio approach across all asset classes, this presents a great opportunity for technology and service providers to raise the bar on data suites with customised, flexible solutions. For example, UniSuper, one of Australia’s largest superannuation funds, recently partnered with BNP Paribas’ Securities Services business to leverage Data PRISM360 solution, powered by NeoXam technology, to implement some data management uses cases.

“Data PRISM360 is a centralised platform that will help UniSuper tackle key investment data challenges,” Tan said. “It streamlines data management processes, with strong data quality and data enrichment processes to provide a unified view across multiple assets and across the investment structure, which helps the asset owner manage their investment data more effectively. The solution targets to enhances reporting capabilities and offer advanced analytics, including financial metrics and ESG factors,”

Regarding ESG, BNP Paribas’s 2025 Survey suggested that 79 percent of APAC institutional investors are integrating ESG criteria in their investment decision making, and 60 percent of APAC investors cited “ESG/sustainability data and research and challenges as the biggest obstacle to deploying capital into these investments.”

Specific challenges pertinent to ESG data include a lack of standardisation in performance and reporting metrics, as well as uneven consistency and reliability in the data, according to Tan. The survey numbers “highlight the critical need for improvement in ESG data collection, standardisation, and harmonisation,” Tan said. “This will facilitate better analysis and more effective sustainable investing.”

Looking Ahead: The Future of Data Management

As asset owners continue to evolve their data strategies, the role of technology and service providers will become increasingly crucial in navigating the complexities of modern investment landscapes. Data management solutions will become instrumental in the way that Asset Owners master the monitoring and adjustment of their strategic asset allocation. By leveraging advanced technologies, standardising data practices, and partnering with specialised service providers, asset owners can unlock new levels of efficiency, risk management, and investment performance. This ongoing evolution will not only benefit the asset owners but also the individual investors whose futures depend on these strategic decisions.