Sat, Nov 28, 2015
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.”


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. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November