While data has always been important to institutional investors, today there is increasing demand for new types of data that promise to transform the operations, products and performance of investment firms.
Some of this demand is being driven by investment institutions themselves. Alternative data is a case in point. Alternative data comprises any information published by third parties concerning the operations or market of an investment opportunity. This is ‘big data’ at its biggest and includes everything from social media sentiment and financial transactions to analyst reports and news articles to satellite data and mobile phone traffic. If firms can pull together all this unstructured data and analyze it effectively they can uncover investment insights that may otherwise have remained hidden.
Consumers are also driving demand for new data sources. The rise of investment products that include Environmental, Social and Governance (ESG) criteria is a great example of this trend, reflecting as it does consumers’ growing appetite for investments that are environmentally and socially responsible as well as profitable.
Here at RIMES, we’re constantly looking at ways in which we can help clients meet growing demand for a wider variety of data sources. One of the ways we are doing this is by constantly looking at new, strategic data partners to add to our network and deliver to clients through our Managed Data Service.
Most recently, we signed a data distribution agreement with Consensus Economics, which provides in-depth macroeconomic forecasts that bring together the predictions of the world’s leading analysts in one package. We have access to their forecasts at both top-level and panellist-level for all future forecasts and for their 30-year back catalog. This is exactly the sort of big data that will help firms make the right investment decisions for their customers.
We are also broadening our partnerships to provide firms with the ESG data their clients increasingly demand. Recently, for example, we signed a partnership agreement with Sustainalytics, a global leader in ESG and Corporate Governance research and ratings.
In both these cases, it’s not only access to data that’s key – it’s providing the data to clients in a format that can be used immediately in their operational systems. Big data provides firms with new insights and ways to differentiate their products, but speed is crucial to succeed: the more data-wrangling firms need to do in-house, the less time they have to spend on core business competencies. This is where RIMES adds value: we help firms harness the data opportunities available in feed-ready formats that shorten the time-to-value.
Over the next few years, firms will seek ever more data from a growing variety of sources. Our mission at RIMES is to help them achieve this data growth effectively and at the lowest cost.
RIMES Managed Data Service is a proven data operating platform that helps firms of all sizes and in all regions align their data consumption closely with business needs. Contact us to learn more.
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