22 February 2018

Simplifying the complexities of fund data management

How easy is it for investors to make decisions about investing in your funds?

The quality of the data you publish determines whether your funds are visible to investors or not. Any data inconsistency creates unnecessary noise and complaints from the marketplace. As data becomes out of date, right on one platform but not on another, it damages your brand, creates unnecessary stress on your operations and ultimately impacts your bottom line.

Fund data management is not a core activity for asset managers, yet it is critical to the fund selection process. Data should be accurate, consistent and maintained regularly, and is expected to be such, but we know that is not always the case and the recent MIFID II and PRIIPs regulation has only sharpened that focus on ensuring the data is right regardless of destination and ultimate audience.

What we mean by fund data.

Fund data is usually classified as either dynamic or static. Dynamic data includes daily or regularly pricing share class information, distribution, tax information and more. Static data will be linked to the set-up and nature of the fund, legal information, naming and identification information, manager’s name, fee levels etc.

Asset managers have an obligation to inform vendors of any new mandate or change of data. Until 2009 regulators legally required them to publish in print editions any change relevant to the investors. Post 2009, digital publication became an acceptable standard in most countries, via their own web-site or recognised websites that are publicly available.

Regardless of size, asset managers need to manage and control data ownership and ensure efficient dissemination, in different formats, scopes, requirements adapting to different information flows (vendor specific processes) depending on the publication destination. As they grow, they will also find themselves managing the complexities of publishing in multiple countries, languages, currencies with different data definitions or rules depending on each recipient. This leads to a lot of work and a lot of repetitive checks.

55% data consistency only 

At KNEIP we proactively manage our clients’ data by providing an accuracy and consistency check between our clients’ data and the vendors and platforms, reporting back on, and correcting on the asset manager`s behalf, any errors or inconsistencies. We have observed that before on-boarding, a new client’s average data consistency sits around 55% only. Post on-boarding this number increases to 96%, and in many cases above.  

Because we are independent (we don’t buy and sell data), our only goal is to ensure fund data accuracy and consistency in the marketplace and the large data vendors and platforms are willing to work with us in achieving this shared goal. Our service is an extension of the back office, allowing asset managers to focus on their core service of manufacturing and distributing product.

Download the full infographic of the article here

Get in touch with us if you’d like to learn more about how KNEIP’s solution can assist you in gaining greater efficiency in your fund data management, or for any further information.

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