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Investment Fund Management and the endless knock on effects of COVID-19

Shifting Trends


Investment fund management has seen many shifting trends that have continued to evolve from the tailend of 2019 into 2020 and now into 2021. This is mostly due to the plethora of knock on effects on the global economy catalysed by the arrival of COVID-19 and the governmental failures to locally and internationally control the virus in many of the world’s major economies, forcing the subsequent and effective shutdown of many traditional subsectors of service based industries, with many asset managers and firms taking an even more active or more proactive approach to managing funds and portfolios in acknowledgement of the unfolding situation.

These shifting, interdependent trends, to which many industries have had to adapt to rapidly, or even just attempt to withstand since the onset of the pandemic, included shifting consumer patterns, curbing of social behaviours through stay-at-home orders and erratic economic policy, which, more than arguably, are all overshadowed by the looming need to protect the environment in its expeditiously, perhaps uncontrollable deterioration, an idea intrinsically coupled to the potential and scope for improvements in technology and methods of production, improvements that must be swiftly enacted if only to entertain the very possibility of restoring mother nature itself.

Surprising Financial Outcomes

With global AUM having dropped by around the 4% mark from the start of 2018 to the start of 2019, a fair assumption would have been that the continuation of a pandemic with no end in the foreseeable future would also have affected global AUM negatively. This is actually far from the case, partially due to some useful hedging provided by the increasing success of the most recognisable US and Chinese tech and big data companies as well as a solid number of pharmaceutical companies, including smaller players such as Moderna that announced the creation and forthcoming distribution of an effective COVID-19 vaccine.

So, in spite of near record high levels of unemployment, low levels of consumer disposable income, the stretching of global medical infrastructure and disruption to global supply chains, the combination of influences as mentioned in the two paragraphs above have gone on to facilitate a noted increase in investable assets from 2019 to 2020, with both stock prices and property values also doing well by the tail end of 2020, boosted by the certainty provided by the confirmation of Joe Biden’s presidency and his long track record for supporting big business throughout his political career assisting in the continuation of wealth generation in the financial markets of western economies.

However, with the indications of a shifting investor base that is increasingly moving away from the traditional western economies, along with GDP and purchasing power parity starting to take bigger step towards the global east, means that it is of increasing importance to regularly and consistently observe and analyse market trends and fluctuations on a more frequent basis, and equip oneself with the adequate and relevant tools to do so.

How Alternativesoft can help

Alternativesoft’s innovative investment software platform is used by international fund and asset managers across the globe and provides all the necessary tools and statistics to aid companies, portfolio managers and professional investors in their decisions to buy, sell or hold funds and manage fund portfolios, as a pose to just investing in company shares, real estate, securities or bonds, where your exposure to risk can be relatively high for less return on investment.

Our software offers the perfect set of tools that provides a range of opportunities to not only further develop investment skill sets that lead to optimised investment decisions concerning asset, hedge fund or mutual fund allocation, the choice to focus on long term / short term returns, the level of diversification needed to achieve investment goals, and even in procuring a greater understanding how the specific themes of particular funds influence the return on investment and associated risks.

Utilising key aspects of financial engineering and cutting edge, even ahead of the curve computer science, our globally acclaimed, and observably innovative software platform is used by some of the largest multinational financial institutions. With its ability to apply any contemporary quantitative risk or financial models in order to identify the types of risks associated with investment products whilst taking into account the current and future volatility of global stock markets, it will help even the most astute fund analyst to foster an even more comprehensive understanding of how different funds work and the risks related to particular asset classes. Furthermore this flexible investment platform benefits clients by adding to the overall breadth of evaluation possible when applying different, unique or highly specific trading strategies in the quest to boost positive indicators like relative performance and risk adjusted returns whilst managing and diversifying all apparent risks within a portfolio.

With consistently updated and highly tailored functionality supplying all the relevant, necessary information and in depth analysis to assist in creating thorough and unique reports, adhering to compliance, and completing audits, Alternativesoft’s award winning software platform is an invaluable tool in times of highly visible financial uncertainty and social unrest. Having these all together on one platform adds efficiency to the practical application of international investment nous and evolving risk management perspectives of leading fund managers, financial institutions and professional investors alike, something that is key at a time when many investment firms are adjusting their budgets, financial strategy and operational structure.

So no matter the nature, wealth or size of the specified target client group or uniquely specialised investment strategy, Alternativesoft’s dedicated support team and investment platform promotes effective decision making and increased certainty of financial projections when choosing and managing investment fund portfolios for individual investors, regional or national investor groups, or multinational financial institutions.

N.B The information provided here is strictly for illustrative and educational purposes only, and should in not in any way whatsoever, be relied upon as professional investment advice or as recommendations to buy, sell, or hold any investments or investment products of any kind.

1 Many Asian nations and Oceanic nations suffered less economic fall out than nations of the other continents as they more quickly managed to contain the virus and subsequent outbreaks due to several factors including recent experiences of the SARS and MERS outbreaks and a bigger focus on the individual’s duties to society in contrast with western individualism, with China being the only G9 economy to grow in 2020. .

2 A survey released in September 2020 of more than 450 restaurants, bars, and nightlife establishments in New York found that 87 percent of businesses could not pay full rent in August 2020 while 34 percent were unable to pay any rent at all .

2 A special IPCC report in September 2019 indicated that feedback loops involving ongoing carbon emissions, ocean acidification, and Arctic / Antarctic permafrost methane release have accelerated global warming and in turn the arrival of extreme global weather conditions at a higher rate than previously estimated.

4Global AUM went up from $91.5trn in 2020 to $10.44trn, with 43% managed by the top 20 managers. Source: TheActuary.com, 26th Oct, 2020

5 One of Joe Biden’s nicknames has been ‘Senator Credit Card’ due to his efforts in building policy favourable to credit card companies, with his home city of Delaware playing host to the headquarters of some of the largest credit card companies in the US. He is also acknowledged to have played a role in proliferating both the military and prison industrial complexes.

6 Source: www.weforum.org/agenda/2019/07/the-dawn-of-the-asian-century/



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