Ben Olmstead, Head of Product Strategy, eVestment answers our questions about Quantum Analytics and the ways analytic technologies is institutional investment practices.
How would you say analytic technologies advancement and sophistication are changing institutional investment practices?
Availability of global data and analytics across asset classes in a cloud-based solution available anywhere and anytime facilitates greater collaboration across globally distributed organizations and increases potential to optimize portfolio allocations through highly inclusive manager research. Rather than being constrained by the number of managers an allocator can meet with and track, an allocator can ensure that emerging managers and strategies that may be physically remote can be included for consideration.
With regards to global portfolio management activities, how do you see the effects of big data and analytics?
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The availability of large data sets on any topic creates an opportunity for incredible insight when smartly mined. For institutional investing, the aggregation of deep data that crosses asset class boundaries in a single data store creates some interesting opportunities for insight into not only historical trends but also forward-looking forecasts. In the case of eVestment, we collect data on how our data is used. We capture every click and therefore have insight into which strategies, regions and universes are getting the most attention from institutional investors. When this click data is coupled with data we track on asset flows and blended with macro and micro-economic data into a 240-factor model, we have been able to create a compelling asset flows forecast that is available as an option to our suite of Analytics solutions. This is just one example of the many opportunities for big data and analytics to advance the industry.
How does Quantum Analytics work?
Quantum is a cloud-based web tool that adds multi-asset class portfolio analysis and portfolio construction capabilities to eVestment’s existing data and analytics offerings. Like all eVestment analytics products, Quantum pulls information from eVestment’s database, the most complete investment database in the world, and allows users to compare investment strategies and products from around the world. Quantum features a dynamic, easy-to-use interface that includes drag-and-drop charting, interactive profiles and personalized dashboards to make comparing investment opportunities and building portfolios quick and easy.
Who should be using Quantum Analytics?
Quantum Analytics is especially useful for investment allocators, such as consultants, pensions, endowments and foundations. Allocators who make portfolio-level decisions will benefit from the liquidity analysis, modeling and optimization scenarios that will allow them to construct portfolios, optimize their investment timeframes and understand the liquidity positions of various investment scenarios.
For investment asset managers, Quantum provides a complete view of the competitive landscape and allows users to analyze how products stack up using side-by-side comparisons of performance, fees and fund positioning.
And for all users of Quantum, the solutions offer the ability to build presentation-ready charts, reports, tear sheets and fact sheets. Managers can customize charts, import content from their organization and create report books to meet every need using the built-in Design Lab feature. This is ideal for both asset managers presenting their strategies and for consultants preparing documents and presentations for their constituents.
What are the main benefits to using Quantum Analytics?
There are several main benefits to using Quantum Analytics. First is access to eVestment’s unrivaled database for the inputs Quantum uses to help investors review options and make investment decisions. Second is the easy-to-use cloud-based interface, which makes building portfolios, understanding liquidity position and comparing investments intuitive and easy. Third is that Quantum allows users to quickly and easily build presentation-ready charts, reports, tear sheets and fact sheets. This is important for both asset managers presenting their strategies and for consultants preparing documents and presentations to support the selection process.