Elevating Consultant databases: Leverage smart technologies to achieve enhanced product visibility

CDB platforms — a key source of institutional intelligence

Asset managers and general partners (GPs) often access the institutional marketplace via CDB platforms. For managers, having a digital presence to showcase their products helps them build a global footprint and attract investors. Institutional investors leverage the data-driven intelligence available from these platforms to conduct investment manager due diligence and for selection and ongoing monitoring.

Digital evolution within the CDB landscape

While many investment consultants have digitalised their approach to data aggregation and analysis over the past decade, a few continue to collate and manage information via manual and traditional formats such as MS Excel and Word. In general, information available on these online CDBs includes quantitative data and qualitative narratives about the investment management firm and the strategies and products it offers. Investment consultants use the data and information gathered to conduct deep analysis and gain meaningful investment insights so investors and advisors can make data-driven decisions, optimise resource allocation and create meaningful outcomes.

Emergence of strategic partners and the need to design a holistic solution

Although asset management marketing and investor relations teams understand that third-party consultants are key to their firms’ success, they often struggle to find the funds needed to invest in consultants. Hence, it is imperative that asset managers design the CDB update process in such a way that they have adequate human involvement for data-quality checks and controls, and use technology to deliver significant speed and efficiency.

  • Methodical approach to ensure sanctity of data uploaded: Inaccurate and incomplete datasets could lead to limited product visibility; an ideal service partner would build several layers of quality checks and validations into the process to ensure accuracy and completeness.
  • Heavy lifting and recommending best practices: An ideal CDB service provider would do the heavy lifting in terms of tasks such as detailed analysis of historical data and recommend developing the most efficient processes. Some use technology to create additional efficiencies, such as making custom data mapping consistent between databases. Support may also include coordinating with the respective database support team to meet requirements.
  • Format-agnostic approach to source data collection: Service providers leveraging proprietary technology platforms to deliver CDB solutions should be able to accept source data in any format. This saves significant time otherwise spent on data sourcing, validation and formatting.
  • Audit of historical data: In addition to regular monthly and quarterly checks, the service partner should be able to conduct an annual quality check of historical data items to ensure post-production changes are incorporated and missing or incomplete data is sourced.

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Acuity Knowledge Partners

Acuity Knowledge Partners

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We write about financial industry trends, the impact of regulatory changes and opinions on industry inflection points. https://www.acuitykp.com/