RIMES, the leading provider of managed data services for the buy-side, today release a white paper discussing The Challenges of Alternative Assets for Institutional Investment Managers. RIMES has sponsored the white paper, authored by Investit, a specialist investment management consultancy.
The paper exposes the challenges that investment managers encounter in the quest for portfolio diversification. It uncovers four key areas that present challenges for firms supporting alternative assets, operating both direct and indirect investment strategies: organisation, operation, systems and data.
RIMES and Investit warn that whilst diversification into alternative assets can mitigate investment risk and generate strong returns, the cost of supporting these assets can outweigh the benefits if the operating model is not planned and implemented well.
Jerry Slason, Consultant, Investit, said: “Our study with RIMES focuses on limitations in knowledge, processing, data and in managers’ core platforms and operating models for alternative investments. Facing these challenges, we’ve identified an opportunity for investment managers to use a managed data service to provide a cost-effective approach that is scalable and improves the time to market for new investment strategies.”
Darell Miller, Head of Business Development for RIMES RDS said: “We are seeing an increasing number of firms grappling with manual and inefficient data processes to support their alternative investment business. The lack of standardization or centralization of counterparty valuations and reference data supporting the alternatives market means that data management challenges are magnified for firms investing in alternative assets.”
“We are supporting an increasing number of buy-side firms that require comprehensive, timely and customized alternative investments data to drive their investment, risk and compliance decisions.”
RIMES releases this white paper with Investit as part of its Autumn thought leadership season. Industry professionals can sign up for a webinar on the white paper to be held on the 8th October. Its programme of content and events culminates in the Data Governance Conference, held on the 24th November, which will feature a presentation on Investit’s perspectives on the industry.
RIMES was recognized earlier this year by the Alternative Investment Awards as providing “Excellence in Managed Data Services”. The honour was awarded following a rigorous research and analysis process involving feedback from more than 370,000 individuals and firms who are active across the breadth of the alternative investment industry.