Data management may not only present an internal challenge for asset managers, which are facing increasing pressure from clients to improve data, according to a survey by buy-side managed data provider Rimes.

Over half of the 120 "key decision makers" from across the buy-side spectrum surveyed ranked meeting growing client demands as their primary or second most important priority in regards to benchmark and reference data.

"This was the highest ranking result, together with rising data management costs," said Alessandro Ferrari, senior vice president, global marketing, at Rimes. 

"We know from conversations with the industry at our roundtables and conferences that these growing data requirements from the asset owners are forcing asset managers to make data management a more strategic consideration."

Other important factors mentioned by respondents included the adoption of more complex investment instruments and, unsurprisingly, onerous regulatory requirements.

“It’s a tough and unforgiving market environment for the buy-side at present. Facing pressures from clients to increase data sources and deliver higher levels of data customisation," said Ferrari. "Asset managers are also under pressure to reduce costs and meet incoming regulation, particularly in Europe."

Quality is now the single most important concern, according to the survey, followed by data governance. Three quarters (75%) of firms acknowledged the main benefit to adopting best practice is data quality followed by 57% of firms listed data cost control as the secondary benefit.

Most (67%) buy-side firms cited data quality improvement as their primary data management priority, up from 43% in the firm's 2014 survey. 

The survey also found that data is increasingly being used at all levels of enterprise. Data-use beyond the core performance and data management teams is growing, with 80% of risk departments now regularly use reference and benchmark data, a marked rise from 59% in 2014.