Delivering Digital Transformation To Investment Managers Through Quality Data And Next-Gen Cloud-Based Technology

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ResearchPool has announced an exciting partnership with IHS Markit, a world leader in critical information, analytics, and solutions, to offer IHS Markit’s institutional investor customers access to ResearchPool’s advanced solutions for content discovery and management.

ResearchPool and IHS Markit share a vision to build a leading investment research community including institutional investors, research providers and corporates. 

The first step in our partnership will open access to ResearchPool’s cloud-based platform as part of the ongoing digital transformation within the investment management industry geared towards improving operational technology, whilst reducing cost and mitigating risks.

In this blog post we explore:

  • How active investment managers are transforming their businesses to meet the challenges arising from the COVID 19 pandemic, regulatory change, and increased competition from passive funds,
  • The importance of quality data as the foundation of the next-gen technology solutions; and
  • The innovative services that ResearchPool offers.

Transforming active investment management operations and technology

During the COVID-19 pandemic, investment managers revenues broadly remained robust, however the imposition of lockdown restrictions exposed weaknesses in some firms’ operations and technology, especially as more staff started to work remotely. 

Firms now recognise that it is ‘business critical’ to have access to robust data and the digital tools to support effective investment decision making, portfolio management, and client and staff communications.  This has been the catalyst to accelerate digital transformation to improve operational efficiency, regulatory reporting, information security, and drive cost savings.

It is worth reinforcing that the accelerated adoption of digitisation and the continued roll out of Artificial Intelligence (AI) and Robotic Process Automation (RPA) technologies is dependent on the quality of the underlying data and its effective husbandry, including data governance, data integration and accurate aggregation.  Quality data is King!

At ResearchPool, we believe the digitisation trend will be led by firms’ desire to eradicate legacy systems and manual processes by moving to cloud-based platforms, prioritising data, using modular solutions, and connecting to specialist third parties.

Quality data for better investment decisions

In 2020, index-tracking funds accounted for 20% of the total European investment market for the first time – doubling market share in just 10-years.  This increased competition along with other regulatory and administrative inefficiencies has led investment managers to seek improvements to their operating model for alpha generation and the data used in their investment decision making process.

Research suggests that a significant percentage of all data held within an organisation goes unused for analytics. (Forrester research suggests 60-73%).  Therefore, it is anticipated that the adoption of new analytics technologies and access to a broader source of data and research will likely improve an investment manager’s ability to test and validate investment ideas, recommendations, and decisions.

This is where ResearchPool steps in.  ResearchPool’s mission is to provide the next-generation of innovative external and internal investment research aggregation and workflow solutions.

Launched in 2015, ResearchPool now provides active investment managers access to a wide range of third-party investment research through our marketplace combined the facility to upload internal research and interaction management data in a centralised, secure and accessible cloud-based technology platform. 

As digital transformation accelerates, ResearchPool will continue to develop its solutions to ensure that an investment firm’s research data is stored on our platform – conformed, normalised and secure – providing the foundation for machine learning or AI analytical tools to support the investment decision process.

Providing IHS Markit’s customers access to investment research services

Our partnership with IHS Markit will offer institutional investors access to over 2 million pieces of research and analysis from some 400 providers of global investment research through ResearchPool’s cloud-based aggregation platform. 

Underpinning the platform is a robust and efficient entitlements mechanism that enables users  to quickly access research content from a wide range of research providers and then securely store it in their online account. 

ResearchPool also allows internal research and information to be centrally stored alongside external third-party information.  The platform then provides easy access to relevant external and internal research, models and market intelligence using ResearchPool’s proprietary discovery dashboard that provides users with advanced search features and personalised feeds, tags and email alerts.  Importantly, the specific dashboard enables research consumption data to be visualised using ResearchPool’s sophisticated analytics to provide invaluable insights and data for research evaluation. 

In addition, institutional investors will benefit from ResearchPool’s integrated calendar and interactions management tool that creates a historical record of activity with corporates and the sell-side.  The tool allows data to be created directly from Microsoft Outlook® with automated recognition and tagging to minimise administration. Monitoring and evaluation of research consumption is enhanced through smart data visualisation tools.

Research providers will be offered the ability to upload research and other insights to ResearchPool to extend their distribution reach to new investors and markets. 

Additional benefits to ResearchPool’s users

By increasing the size of the ecosystem, ResearchPool’s community of over 20,000 registered users will benefit from access to additional research content and research providers will further extend their distribution reach to an influx of new prospective customers. 

We now look forward to extending the services we offer corporates to welcome them further into our community.

Driving transformation

Active investment managers are transforming their businesses to meet the challenges arising from the COVID 19 pandemic, regulatory change, and increased competition from passive funds. 

Service providers such as IHS Markit and ResearchPool are dedicated to supporting investment managers to deliver innovative solutions to their clients by developing creative technology and data solutions. 

We look forward to continuing this in the future.

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