Fifty three percent of asset managers are not confident that the investment performance figures they report are completely accurate, according to a new survey by SimCorp.
A total of 88 asset managers representing USD22.5 trillion in assets under management participated in the survey, conducted during a recent SimCorp webinar, “IBOR: The One Source of Truth for Investment Performance.”
This lack of confidence in reporting can be attributed to additional information revealed by the survey. For example, 80 per cent of respondents confirmed that portfolio managers do not receive investment performance numbers based on intra-day position calculations. Furthermore, only 59 per cent are able to look through to see the trades, prices, FX rates and classifications that are driving each portfolio’s 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.
“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,” says Marc Mallett, Vice President of Product & Managed Services at SimCorp North America. “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.”
