Asset Managers’ Disaster Recovery Plans Passed the Test of Coronavirus

In March 2020, the world went into lockdown and working practices went through a seismic shift virtually overnight. With employees at home, asset managers had to adapt to a completely new and unfamiliar structure. Investors were understandably concerned about asset managers’ ability to continue to function smoothly during this interruption.

Historically, investors have turned to asset managers’ business continuity and disaster recovery plans to review their ability to cope with unforeseen events. Both illustrate how managers’ key functions are maintained or quickly re-established in the event of a major disruption. They are a plan of procedures and actions an asset manager will follow in these circumstances

This time last year, Door – the database for professional fund investors - saw a spike in activity related to disaster recovery.  In one month, there was a 92% increase in manager research teams accessing asset managers’ business continuity plans compared to the same period in 2019. This stayed as the highest trending topic on Door for the next three months. Investors also focused on other factors relating to the smooth running of key functions, such as: the decision-making process when portfolio managers are incapacitated, where interest increased by 40%; how asset managers oversee outsourced functions, where traffic grew 70%; and questions around the frequency of portfolio risk testing, where demand rose by 84%!