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Explore investment strategies for 2023: Dive into the nuances of seeking alpha returns and understanding beta with Noviscient's expert insights.

There were many surprises for us at the start of 2020. The halt to life as we knew it, with contrary and questionable statistics, bringing the light the need for clear, reliable data. The impact to many of our portfolio companies, much of which is still unfolding, highlighting how much the manner in which a firm operates may not be obvious to investors[1]. One clear surprise for the investment community was how several investment strategies that had promised diversification or pure alpha returns transpired to correlate highly to the market.

The asset management industry is a data industry, handling information rather than physical goods. It is an industry that is managing $100 trillion in assets. It is an industry that impacts the retirement outcomes and future happiness for every single one of us.

Investors have three ways to generate returns in tradable markets. Invest in deposits or government bonds to earn a risk-free rate of return (time value of money); Take on various market and factor risks to earn the respective risk premia (betas); Find inefficiencies and dislocations in markets and capture this excess returns (alpha).

Singapore fintech firm Noviscient is looking to change the way investors find alpha via a technology driven platform that helps select and allocate to quality alpha funds.Scott Treloar, founder at Noviscient in Singapore, said the technology was similar to how Amazon provided a matching service for customers and suppliers. Noviscient’s platform, however, allowed the firm to tailor custom solutions for investors from trade data collected from participating funds, making it more than just a matching service.