Investors’ demands for transparency and concerns about operational risk have risen over the last several years. Is the post-meltdown focus on due diligence in selecting managers and greater demand for specific information a lasting change or just a temporary phenomenon?
Stone House Consulting, in conjunction with Infonic AG (the makers of HedgeSphere), is conducting a survey focused on operational risk and investors’ requests for more and clearer information about their managers’ investment strategies, controls, and results. The survey is designed to address questions like:
- How important an issue for investors is operational risk? Will investors take a more active role in sharing operational risk management with their managers and administrators?
- What are the most significant areas of operational risk within an investment management firm?
- Are investor requests for additional information and transparency continuing to increase or are they beginning to level off? How are managers meeting those demands?
- Are investors conducting the same level of due diligence on traditional and alternative managers?
- How do managers communicate with investors? How would investors prefer that their managers communicate with them?
- Will institutional investors continue to increase their allocations to alternatives? If so, will they do so through direct investment or allocations to managers of managers?
The purpose of this survey is to determine the emerging needs of the institutional investor community (e.g., greater transparency to operations, pricing, fund valuation, liquidity, exposure, etc.). In order to accomplish this we are capturing both perceptions as well as realities, across the investment management industry The survey’s findings may shed light on the type of information investors need and want related to operational risk management, how and who creates this information and how they create it as well as how this information might be best distributed/shared between investors, their providers and their investment managers.
Clearly, whatever your role in the investment industry, your opinions on these vital issues are important. We think you will find the survey instrument interesting and estimate that, on average, completing it will take 10-20 minutes. In exchange for your participation in the survey, we will send you a summary report highlighting the most meaningful data, including disconnects between investors’ expectations and managers’ views. You may wish to use this report as the basis for dialogue within your organization and with your clients, managers or service providers.
In addition to the summary report, you also will be eligible to win a flip camera. To get started, click here.
Should you have questions while completing the survey, please contact Holly Miller and Philip Lawton at Stone House Consulting, LLC.
Stone House Consulting, LLC 