With the technological evolutions, we are having machines to do the task of ‘thinking’ and decision making for us. The greatest advantage of machines given the task of thinking is that they are devoid of emotions and can make precise decisions based on analysis. This predictive analysis when applied to investments can help improve key performance metrics and can greatly improve the returns and most importantly help you avoid costly mistakes.
The world has become a global market and political, cultural or financial developments in one part of the world can have a critical impact on your investment…For example, a small article in the newspaper about developments in North Korea can have an impact on your investment in the USA. Point being made is that there are a host of factors that you need to consider when investing in Endowment funds and you must look beyond the traditional historical data.
Though we are into the 21st century, where everything is digitized from friends to relationships and everything in between, when it comes to data management, we’ve still a long way to go…
Even the largest family fund owners are unable to manage the data overload and make it’s apt use in making optimal investment decisions…Decisions that could mitigate risks and enhance earning potential!
A recent research by Ashby Monk of Stanford University(Global Project Center) and Daniel Nadler and Dane Rook of the Kensho Technologies throws insight into how endowments, sovereign wealth funds and some of the biggest pensions handle data.
Earlier, I discussed how IT can be used to improve your portfolio’s return profile. Todays, I would like to speak about how to put a Governance Structure for your endowments IT investment. Such a governance structure will define business goals, process to involve IT, define success parameters upfront and track progress and usefulness periodically.
The technology landscape in traditional endowments, foundations and family offices is changing! From running servers under desks to running servers in the cloud. From running multiple vendor-sourced client server application that performed a single function each, to demanding custom-built, end-end systems that leverage current investments while making the end-user experience seamless and rich. And this change has happened over a relatively short duration of time – in the past 2-3 years!