Let’s take a look at how data is re-shaping asset management. McKinsey writes: “In the last few years, the application of advanced analytics in asset management has moved from the realm of science fiction to, simply, science. Leading firms are applying these tools & insights to improve distribution effectiveness, investment performance, & productivity in the middle & back offices. While some firms are using analytics to enhance productivity of existing practices, others are taking advantage of these new capabilities to ask more fundamental questions about their operating models. What could an analytics-driven distribution approach look like? How might research organizations change with the use of new tools & the availability of alternative sources of data? While there is still some uncertainty around the extent & pace with which analytics will impact asset management, it is our view that superior analytics capabilities will be a key driver of success in the industry going forward.”
We agree. Use CRRE as an easy example. Many properties are held on the balance sheet as cost minus depreciation because they are Level 3 assets. This makes borrowing a chore. Better data (observability) moves asset to Level 2 – and enhances capital efficiencies. Inveniam software takes you there.