Can You Trust Your Manager’s Performance Reports?
Over half of managers are not confident their performance numbers are accurate.
BY Caroline Cakebread | June 24, 2015
Can you trust your investment manager’s performance reports? Possibly not according to a recent survey by technology firm, SimCorp, which found that 53% of asset managers are not confident the investment performance figures they report are completely accurate.
Participants in the survey include 88 asset managers representing $22.5 trillion in assets under management.
The lack of confidence boils down to difficulty obtaining timely and accurate information around trading — as a result, asset managers could misreport performance data to investors and regulators. Worse, they could end up making trading decisions based on incomplete information.
As managers surveyed reveal:
- 80 percent of respondents confirmed portfolio managers don’t receive investment performance numbers based on intra-day position calculations.
- Only 59 percent are able to look through to see the trades, prices, FX rates and classifications that are driving each portfolio’s performance numbers.
Read the full survey.