June 24, 2019, Copenhagen – The investment manager selection process has changed radically in the past decade. Technology has made it possible for investors to find the best fit managers they may have missed previously, and investors are recognizing the expanding role technology and data plays in meeting their fiduciary responsibilities.
London-based eVestment Director of Sales in EMEA Jeremy Lee will address the topic at 5 p.m. on Tuesday, 25th June at the FundForum International conference in Copenhagen, Denmark. Lee will share his insights and lead a panel discussion with other industry practitioners to offer a view of the changes and opportunities technology is bringing to the industry.
“In the hundreds of conversations we have with manager selection teams they consistently tell us there’s both a science and an art to selecting an asset manager,” said Lee. “But investors are now leaning more heavily on the science. This is crucial as institutional investment stakeholders – board members, plan participants, government watchdogs – have a duty to ask questions about why one manager was selected over another. The people who made those decisions have to be ready with answers they can back up with data.”
A few key points Lee will address in his talk include:
- Investors must have documented, repeatable processes in place for selecting new managers.
- Investors have identified that they are potentially missing better fit managers due to lack of visibility outside of their known pool. To better satisfy their duty of care, the adoption of new technology and databases has become necessary in their manager selection and monitoring processes.
- As best practices are evolving in this landscape, investors are encouraging managers to update industry databases as completely as possible to ensure investors are considering all relevant managers during the screening process.
“I’m looking forward to sharing these insights at FundForum, to attending a number of the other sessions and to the terrific networking opportunities at the conference,” Lee said.
One topic that remains central to the manager selection process is asset management fees. eVestment’s new report, The State of Institutional Separate Accounts Fees, provides a comprehensive overview of fee structures across the traditional strategy landscape globally. The report compares stated fees from thousands of asset managers reporting to eVestment covering more than 8,000 separate accounts with actual negotiated fees charged on mandates awarded sourced from eVestment Market Lens. The report can be downloaded here or attendees to FundForum can ask about the report at the eVestment booth.
To see the full FundForum conference agenda, please click here.
eVestment, a Nasdaq company, provides institutional investment data, analytics and market intelligence covering public and private markets. Asset managers and general partners reach the institutional marketplace through our platform, while institutional investors and consultants rely on eVestment for manager due diligence, selection and monitoring. eVestment brings transparency and efficiency to the global institutional market, equipping managers, investors and consultants to make data-driven decisions, deploy their resources more productively and ultimately realize better outcomes.
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