Many fund managers still fall short on reporting

Less than half of GPs are ‘up to speed’ with investor information demands, a survey found.

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Less than half of GPs are ‘up to speed’ with investor information demands, a survey found.

Almost one-fifth of fund managers are still not providing their investors with the information they require, according to a study by fund administrator Augentius.

In total, 47 percent of global managers were considered “up to speed” with investor demands, which means LPs did not need to make special information requests. Just over one-third provide more information when asked.

“Additional work is still being created for LPs, and what is surprising and somewhat concerning is that nearly one in five investors ask for additional information but don’t receive it,” the report said.

There is a regional divide on how managers intend to bridge the information gap. American and European managers are eyeing technology while their Asian peers plan to increase resources.

The survey also highlighted the need for managers to move to more secure communications. Only 35 percent of LPs currently receive information via investor portals but 42 percent would prefer this format.

“[This suggests] investors are increasingly aware of the risks involved in older methods and are starting to expect more,” the report said.

Again, there were regional differences in communications trends, with more fund managers in the Americas reporting via a portal. Just under half, 43 percent, do so compared with 36 percent in Europe and 22 percent in Asia.

The survey, which ran over the summer, included more than 100 global private equity and real estate fund managers and investors.

Transparency and communication remains a key issue in the industry. Another recent survey, conducted by Intralinks, found that while more than half of fund managers had become increasingly transparent over the past two years, only 18 percent of investors were “very satisfied” with the clarity received from fund managers.