SimCorp: Asset managers mistrust their own numbers
23 June 2015 Copenhagen
Image: Shutterstock
More than half of asset managers do not wholly trust their own investment performance figures, according to a survey by SimCorp.
In a survey conducted in a webinar, 53 percent said that they are not confident that the figures they report are correct, while 80 percent said they do not receive investment portfolio numbers based on intra-day position calculations.
Less than 60 percent said they are able to see the trades, prices, FX rates and classifications that drive their portfolios’ performance numbers.
According to SimCorp, a lack of accurate information could lead to asset managers misreporting performance data to investors and regulators. It could also mean they make ill-informed decisions on trades, potentially putting them at a competitive disadvantage.
Marc Mallett, vice president of product and managed services at SimCorp in North America, said: “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 what’s actually driving the performance. This casts a large doubt on the accurate tracking of investments which does not inspire investor confidence.”
He 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.”
The survey included 88 asset managers representing about $22.5 trillion in assets under management.
In a survey conducted in a webinar, 53 percent said that they are not confident that the figures they report are correct, while 80 percent said they do not receive investment portfolio numbers based on intra-day position calculations.
Less than 60 percent said they are able to see the trades, prices, FX rates and classifications that drive their portfolios’ performance numbers.
According to SimCorp, a lack of accurate information could lead to asset managers misreporting performance data to investors and regulators. It could also mean they make ill-informed decisions on trades, potentially putting them at a competitive disadvantage.
Marc Mallett, vice president of product and managed services at SimCorp in North America, said: “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 what’s actually driving the performance. This casts a large doubt on the accurate tracking of investments which does not inspire investor confidence.”
He 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.”
The survey included 88 asset managers representing about $22.5 trillion in assets under management.
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