NEWS

28 JULY 2023

Managing investments in turbulent markets

Smiling businessman sitting in office lobby working on laptop. Male business professional working in office lobby.

The financial markets are marked by a “poly-crisis”. More than ever, we need reliable data and innovative financial solutions to make informed investment decisions.

Whether it’s the climate crisis, the coronavirus pandemic or Russia’s war of aggression in Ukraine – the crisis mode of recent years and the associated inflation have kept the financial markets very busy.

Since 2022, rising inflation – combined with rising interest rates – has been the event that many professional investors globally expected to have the biggest impact on investment performance over the next 12 months.

But the challenges also harbour new opportunities. The markets for renewable energies, digital technologies and innovations related to artificial intelligence are developing rapidly.

Megatrends that move investors

 

In addition to these crises and rising inflation, other core issues also have the financial markets firmly in their grip. We rightly demand meaningful, high-quality data and maximum transparency on the megatrends that will continue to move the financial markets when making investment decisions and managing customer portfolios.
 

This includes the large area of ESG with global environmental trends, social corporate governance and important compliance rules, which concerns many investors and financial advisors - and which has a lasting influence on our investment decisions. According to a recent study by the Royal Bank of Canada. Over the past year, more than 40 percent of investors considered economic, social and governance (ESG) considerations to be a fully integral part of credit analysis. They believe that ESG plays an important role in creditworthiness, affecting credit quality and borrowers' ability to meet their financial obligations. "About a third of investors invest exclusively or frequently in ESG-compliant financial products," says Zlatko Vucetic, CEO at Infront. The effects of the invested capital

on the living environment and the population are of the greatest importance, especially for the millennial generation of investors.
 

Also the much-discussed trend of big data is both an opportunity and a challenge for investors and financial advisors. The amount of information available today often exceeds our ability to analyse it effectively and use it for positive, tangible results. This is precisely what is indispensable for well-founded investment decisions.
 

In addition, the topic of digitalisation represents a megatrend that will probably never end. Remote work, hybrid working models and the growing technological demands of Generation Z are having a major impact on how we invest and the proportion of technology companies in our portfolios. In this context, the blockchain technology has just become proven to be stable and useful over the years. Financial experts expect it to play an increasingly important role beyond cryptocurrencies in areas such as the metaverse.

Megatrends like big data and digitalisation of services are impacting investment decisions

Well-founded investment decisions require new solutions

 

It quickly becomes clear that the financial markets are in a field of tension, characterised by a high degree of dynamism, which makes it difficult to make well-founded investment decisions. Independent, valid data that can be quickly and natively transformed into decisions – just as dynamically as the markets move – are the foundation of all these decisions.

Recognising the data heterogeneity that often exists and the costly delays it can cause investors, Infront aims to challenge the status quo and develop intelligent alternatives to the prevailing financial market solutions. With great success - because Infront solutions are already being used by over 70,000 professional users.

With Infront solutions, investors and financial advisors have the opportunity to combine the available data on stocks, derivatives, fixed income securities, commodities, funds, foreign exchange and money markets in their own personal interface and thus benefit from valuable, tailor-made insights into the financial markets benefit.

Financial data: Quality matters

 

At Infront, we believe that finding the right data to invest in should be straightforward, and the data accurate. Our cloud-based platform offers a powerful combination of global market data, electronic trading, news and analytics, complemented by solutions for data and feeds, portfolio management and advisory, compliance, publication and distribution. All solutions are modular and scalable to meet the diverse needs of investors and investment advisors.

Infront also provides web-based tools that brokers and investment advisors can use to digitise their offering for private investors.

By supporting the entire workflow, financial professionals can make informed investment decisions while reducing expenses and responding to sudden market changes. Changes caused and amplified by the pandemic, the tense geopolitical situation, the energy crisis and rising inflation. In addition, the technology makes it possible to work more efficiently with the ever-growing amounts of information – big data – on trending topics such as ESG and blockchain technology.

This also convinces our customers. A risk manager at a large financial services company reports: “Infront is an outstanding tool for gathering market data. The team loves the simplified layout and the ability to create views with data and charts. This makes handling and analysing the data far easier than with some other market data providers.”

 

Discover Infront solutions




Original article created by Capital and republished by Infront with permission.