More than 100 investment professionals and industry consultants attended Northern Trust’s event, held in London (17 September 2024). The symposium featured industry and Northern Trust experts discussing topics such as data as a strategic asset, misconceptions about digital assets, how cloud technology and AI will transform the future and the evolving cybersecurity landscape.
According to the survey, 34% of respondents have already incorporated or plan to add digital assets to their investment portfolios in the near future. This strategic movement underscores the growing recognition of the potential for digital assets to enhance diversification and drive innovation within investment line-ups.
The survey also reveals that 66% of respondents believe private assets will benefit the most from a transition to digital formats. This is closely followed by real world assets such as commodities and property (53%) and money market funds (36%). These insights reflect a broader industry trend towards the digitization of traditionally illiquid asset classes, aiming to unlock new efficiencies and value.
Cybersecurity remains a paramount concern, with 88% of respondents identifying cyber risk as a top or major issue for their organizations. The potential threats posed by advancements in AI are also significant, with 81% of respondents expressing high or moderate concern about AI-driven threats or attacks.
In the realm of AI’s positive impact, more than a third of respondents believe AI has the potential to significantly enhance portfolio optimization. Furthermore, 26% of respondents anticipate AI will transform their manager due diligence processes, while 21% foresee a substantial impact on risk management procedures.
“These findings underscore the duality of opportunities and challenges as our clients navigate their data needs with the emerging integration of digital assets and advanced technologies,” said Pete Cherecwich, incoming Chief Operating Officer at Northern Trust. “As the investment landscape continues to evolve, we remain committed to providing our clients with the insights and solutions needed to manage these dynamic changes.”
“Despite data’s importance, there can be a disconnect between its role and its integration with business strategy,” said Kelley Conway, head of Corporate and Digital Strategy at Northern Trust. “The survey found that only 62% of respondents have a data strategy in place, which reveals a significant gap between the value they place on data and their ability to put it to effective use in their business.”
