Close to 45% of institutional investors surveyed at a recent event hosted by Northern Trust in Stockholm felt that data aggregation posed the greatest business challenge in achieving the highest standards of governance, monitoring and oversight.
Respondents placed cost and internal resources (29 percent) as their next greatest challenge, followed closely by ensuring investment transparency (21 percent).
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Approximately 40 Nordic institutional investors – including some of the largest and most sophisticated asset owners in the world – were surveyed at a recent event hosted by Northern Trust in Stockholm entitled ‘Investing at a Time of Geopolitical Risk’ held during September 2014.
"It is not surprising that obtaining the right data is the greatest challenge for investors, particularly as they are faced with changing regulatory requirements against the backdrop of global geopolitical uncertainty," said Ian Castledine, global head of risk and compliance product at Northern Trust. "Helping institutional investors make informed investment decisions is vital, particularly in today’s economic environment and data is at the heart of that, but what is also increasingly important is the ability to analyse and optimise that data so it is meaningful for investors."
Whilst cost and internal resources were not investors’ greatest challenge, the overwhelming majority (82 percent) nevertheless expect their internal resourcing and capital allocation for governance and compliance to increase relative to today.
"Governance has risen markedly up institutional investors’ agendas, particularly in response to increasing regulatory challenges. This has driven the need for more frequent, granular and holistic data for stress testing," said Penelope Biggs, head of Institutional Investor Group for Europe, Middle East and Africa (EMEA) at Northern Trust. "Our Institutional Governance Services product range ensures that our clients can achieve better oversight, transparency and understanding of the make-up of their portfolios and the risk they are exposed to. It is the breadth and frequency of data that our clients are looking for which they can use to drive their business decisions."
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By GlobalDataNorthern Trust has provided risk and performance services to institutional asset servicing clients for more than 30 years. Supported by leading-edge technology, Northern Trust’s Investment Risk and Analytical Services group help clients to analyse and aggregate data with an extensive range of capabilities, including risk reporting, performance measurement and compliance services.
Northern Trust provides custody, fund administration, analytical and investment operations outsourcing solutions to asset owners, asset managers and institutional clients, worldwide and across the spectrum of asset classes.
