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Emerging stronger

Investment management operating at the speed of the markets 2.0

At investment management firms, the COVID-19 pandemic has revealed areas that could be improved. Learn how active investment managers can use digital and advanced technologies to become more responsive and resilient.

Key findings

Active managers should be up to date with market actions and a potentially accelerated asset re-valuation cycle—even more so during a crisis such as this one. Those who are able to effectively manage risk and generate alpha through periods of volatile market swings have an opportunity to demonstrate their value to clients.

New digital capabilities can provide timely insight during chaotic periods to support front-office decision-making and client communications.

Over the past several months, there has been a notable increase in the number of sell-side analyst research reports that contain “alternative data.” As clients become more comfortable with the role of alternative data in the investment process, more sell-side firms are expected to incorporate alternative data into their analyses.

Firms may benefit most from artificial intelligence (AI) and alternative data if leaders think broadly about their implementation and how to strengthen relationships between the IT and securities analysis parts of the organization.

Some investment management firms will likely find that adopting natural language processing and generation (NLP/NLG) technologies in their investment process enables them to operate at the speed of the markets even as markets accelerate, allowing them to utilize new types of data and thrive in the “new” normal.
 

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