Asset managers have trouble believing their data. This was the finding of a survey conducted by SimCorp, an investment services provider. SimCorp found that 53 percent of asset managers are “not confident that the investment performance figures they report are completely accurate,” according to a press statement.
These findings were the result of a survey of 88 asset managers who claim to represent $22.5 trillion in assets under management. The survey was conducted during a SimCorp webinar entitled, IBOR: The One Source of Truth for Investment Performance.
The webinar survey also revealed other instances of lack of confidence among asset managers. For instance, 80 percent of respondents confirmed that portfolio managers do not receive investment performance numbers based on intra-day position calculations. Further, 59 percent replied that they are able to look through to see the trades, prices, FX rates and classifications that are driving each portfolios performance numbers.
“Without accurate and timely information, asset managers may misreport performance data to investors and regulators or make ill-informed trading decisions, potentially putting firms at a competitive disadvantage,” according to the press statement.
The investment process should be seen as an opportunity – the differentiator which enables your firm to add value for your clients. If performance data is not up-to-date, there is an inability to see whats actually driving the performance. This casts a large doubt on the accurate tracking of investments which does not inspire investor confidence, said Marc Mallett, vice president of product & managed services at SimCorp North America.
Mallett added, There is a critical need for asset managers to have access to real-time and accurate performance data, and these survey numbers show a significant gap between the tools asset managers have available and what they require to make high-quality investment decisions.
