Actionable Insights from Fund Data

The world is now flooded with data. According to a study by the International Data Corporation (IDC), this year, the world is set to generate 50 times more data than we’ve had in the last decade. The demand for easily digestible information is also increasing as technology develops and the rate of communication speeds up.

The evolution of how we process data

Back in 1890, Herman Hollerith developed a method for machines to document and store information onto what was known as punch cards. To read the coded information, the cards had to be manually inserted into a reader and sent to a computer.

Thankfully today, you can access copious amounts of data, almost instantaneously, through centralised data sources. Advanced analytical and research tools help us to further digest this information with the ability to draw insights from built-in and or custom reporting features and dashboards.

Getting insight from data

From an institutional standpoint, companies are focussed on presenting data in easily digestible formats. Visual representation of performance, traffic light indicators of success, and arrows pointing up and down – as simple as they are, allow us to see patterns and quickly gauge whether the overall sentiment is positive or negative. The key WIIFM (what’s in it for me) factor being the effective distribution of information that is not only communicated and understood by key stakeholders but easily shared for greater reach and influence.

The knock-on effect is powerful – faster decision-making, prompting progress and growth.

The impact on Fund Data

Our industry is no different. Investors are inundated with fund data with the forever growing amount of funds, which is why so many are turning to Financial Advisers for professional advice. In turn, Financial Advisers are also trying to keep up with the plethora of information sources – not to mention any quantitative and qualitative ratings to add to the mix.

Our industry has a responsibility to make fund information more accessible and simpler to understand. Professional and private investors seek quick and independent validation when researching and selecting funds.

In fact, according to Platforum (2017), Ratings & Research Agencies influence £210 billion of advised fund assets held on platforms, and 57% of active investors think it is important to have good third-party ratings when choosing a fund manager.

It is most definitely in the interest of not only investors, but fund managers to have their fund information readily accessible. Combine this with engaging digital tools and easily digestible visuals, and you are well on your way to effectively communicating your value to your customers whilst also offering the transparency and flexibility they demand to pick and choose how they assess value.

Consolidating fund data for actionable insight

With this in mind, we’ve worked with Square Mile to take inspiration from your everyday food nutrition labels on food packaging, to ensure professional investors are making healthy choices when selecting your funds. Research has proven that the inclusion of standardised health information reduced a person’s unhealthy food purchases by 13%, whilst it increased buyers’ vegetable consumption by 13.5%. Similarly put, we want you to showcase the health benefits of your funds and keep your client’s well-nourished!

We’ve condensed the masses of data available on our data platforms, and compacted it into easily digestible fund labels, drawing on the most salient pieces of information you need to make informed investment choices. The fund dashboard allows an adviser to view a fund at 5 different levels; opinion (qualitative and quantitative), performance, risk, cost and ESG. Additionally, it draws attention to the key elements of a fund that an adviser may not have considered previously.

This is for illustrative purposes only.

If you’d like to know more about our ratings, dashboards, and digital solutions, contact us and let us help you bring your investment proposition to life.