Market volatility puts a premium on investment data quality

With the New Zealand election and US election happening within weeks of each other, the post-election period can cause market volatility and uncertainty in the financial sector. According to the New York Times, the spectre of a disputed election result in the US is heightening investor nerves, after a period of strong growth.

Market uncertainty is likely to have a direct impact on fund managers because the more turbulence there is in financial markets, the more likely that investors themselves will lean to a more conservative approach. Covid-19 has seen financial markets through ups and downs; combine that with upcoming elections and financial markets may remain uncertain.

Investment managers are also concerned with the macro implications on other areas, such as the impact on trade deals, supply chain delays, and exchange rate fluctuations.

Accurate, reliable, fast data in one place is fundamental for Investment Managers to be in control and react quickly 

Professional investment managers are accustomed to dealing with market volatility and deploying strategies to mitigate risk . They understand the need to make robust investment decisions when it’s not clear what might happen before, during and after elections.

Although there’s uncertainty and disruption during election time, there’s one area that can remain stable: the quality of investment data. The last thing that fund managers need to deal with is uncertainty in both the financial markets and within their datasets. The stronger your data foundation is, the greater confidence you can have in making the best decisions quickly in a volatile environment.

It’s essential to be basing decisions on the latest accurate, validated data. Making decisions based on outdated data could have the same result as using data that is inaccurate.

It’s also important to work from data that’s all in one place – a single source of truth. When data is coming in from a range of different sources, it can take a lot of back-office effort to tie it all together, while increasing the risk of errors. Data like this needs to be ‘cleansed’ before it can be leveraged, and if the platform you’re working from doesn’t achieve this, then the foundation you’re working from may be unstable. And instability is not what you want in uncertain times. Fund managers are dealing with enough risk factors without having to worry about making risky decisions based on inaccurate and unreliable data.

Giving you the confidence to navigate market uncertainty

AlphaCert is designed to provide quality data regardless of the uncertainty and disruption that typically accompanies election cycles. Investment managers gain control by having AlphaCert at the core of their information architecture. AlphaCert’s position within that structure is what we call a ‘hub and spoke’ architecture – acting as the data hub at the centre and specialist systems ingest data creating a strategically powerful single source of truth. AlphaCert consumes data, stores it, visualises it, and reports on it in a consistent, and trusted manner. 

The ability of investment managers to access, interrogate and use data is often what sets them apart, and can allow investment managers to successfully navigate the uncertainty brought about by elections.

What it comes down to is this: if markets are volatile and election cycles are creating storms, AlphaCert will ensure that you can always trust your data.

If you’d like to learn more about how AlphaCert can help you mitigate disruption, schedule a demo and we’ll start a discussion.

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