New industry report highlights crucial learnings for the Buy side, following Covid-19 pandemic - Seite 2

really that important, so we asked why we were continuing to do them. This type of questioning will continue quite heavily in the future, because we need to prioritise the client and what they want.”

Reviewing risk management models

Carsten Mumm, Chief Economist and Head of Capital Market Risk Analysis at Donner & Reuschel (Europe): “We have experienced an event that no one has ever experienced before. A global pandemic, global shutdown and a recession that was mainly man-made by politics, and this is why this is the ultimate test of resilience”. “One of the most important challenges during this market collapse was that we had a totally new fundamental input factor. No one had the development of the pandemic and the number of new infections as an input factor in their investment processes. We saw a completely unprecedented answer of fiscal and monetary politics, with huge rescue operations and liquidity injections, which also created a huge investment challenge.”

Accessibility to high quality, timely and granular, multi-asset data

Molly Shannon, Member of the Executive Committee and Product Innovation Committee at Wellington Management (North America): “Data scientists tell us that 95% of the world’s data has been created in the past 5 years. And so we have essentially begun to restructure our workforce to harness all that data and help inform our investment decisions”. “…Increased trade volumes and lack of liquidity in a market crisis mean that, without technology and the right tools, there is a heightened risk that errors will be made, and client objectives will not be met...”.

Paul Tsironis, Head of Fund Statutory Reporting, IOOF Superannuation, IOOF Holdings (Asia Pacific): “In terms of the quality and timeliness of the data that we are reporting on, we are seeing a lot more regulator influence and request for data…”.“We are seeing quite a lot of these requests coming in and must answer them at a very granular level. Sometimes this information is not available at the push of a button...”.

Delivery of transparent, frequent and flexible client and regulatory communications  

Todd Needham, Director of Business at Loomis, Sayles & Company (North America): “As an investment firm, we exist on behalf of our clients. When instances like this arise, it is vital that we proactively reach out to our clients and share information with them; what we know, what we do not know and what we are trying to find out. This latest market event was no different – we mobilized quickly to get out in front of our clients to let them know that they weren’t alone, as well as what was going on with their portfolios.”