Wed, Oct 22, 2014
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   |   

Banner

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. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t