Tue, May 26, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Thorough due diligence critical to achieving investor confidence, reveals new Advent survey

Wednesday, April 21, 2010
Opalesque Industry Update - 64% of Investment Professionals Report an Increase in Recent Investor Inquiries; 48% Believe Demonstrating Thorough and Consistent Due Diligence Would Most Improve Confidence


Advent Software, the leading provider of software and services for the global investment management industry, today announced the results of its survey that show asset management firms believe exhibiting better discipline and having a greater focus on due diligence are major drivers in regaining investor confidence.

After the scandals and financial crisis on Wall Street in recent years, investors are refusing to be complacent. The survey, which polled 360 investment professionals, found:

- 82% of Directors of Research report an increase in investor inquiries over the last 12 months;
- 48% of the respondents believe that demonstrating exhaustive due diligence is the best way to improve investor confidence; whereas only
- 33% believe better, more frequent, detailed reporting would boost confidence

At the same time, firms are increasingly overloaded by managing the influx of information and research flowing into their offices. According to the results:

- 68% of respondents feel they are overloaded by the volume of information they deal with;
- 66% of respondents spend more than an hour searching through their email inboxes daily; and
- 86% of respondents require multiple systems to acquire research needed to support investment decisions

Tower Group Senior Research Director, Dushyant Shahrawat, commented, “A robust due diligence process would be key to restoring investor confidence. After the recent financial meltdown, investment managers must adopt best practices laid out by the CFA Institute and regulators around research management, which includes having a demonstrable research process that withstands client and regulatory scrutiny. Tower Group believes such efforts may involve implementing research management systems that will boost investor confidence, create greater efficiency in research, and positively impact investment performance.”

Using a research management system, such as Advent’s Tamale RMS®, is a powerful tool for any type of investment institution that needs to bolster its operational processes to support due diligence best practices, while saving time and money.

“The results from this survey show that although the market may have rebounded, investors are demanding even more information to make sure that investment decisions come from sound research,” said Mark Rice, General Manager of Tamale at Advent. “Investment professionals are starting to understand that efficiently managing your research will be a key component of a firm’s competitive advantage.”

www.advent.com


Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. Opalesque Exclusive: Ovation Partners targets opportunities where few "natural lenders" participate[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Changes in financial regulations post-2008 (Dodd-Frank and Basel III) are forcing banks to significantly alter their core lending businesses. And as mid-sized

 

banner