Institutional investors need advanced monitoring and investment tools to keep up with the expected increase in reporting requirements, BNP Paribas Securities Services believes.
The Federal Government's move to increase independent directors on super fund boards will place more emphasis on reporting and data analytics, the global custodian said.
BNP Paribas Securities Services head of product management, Justin Burman, said "We have noticed that an increase in new board members tends to result in an increase in reporting for senior management and those boards".
"There is also greater pressure on funds to move away from the traditional siloed view of risk to a more holistic understanding," he said.
Burman noted sophisticated technical tools to model and calculate scenarios were also needed to understand the impact to the fund's value under different scenarios.
"But the tools themselves are not enough. It is imperative to have access to data that is both comprehensive in coverage and granular in detail to be able to allow flexible scenario modelling," he said.
"Institutional investors will require advanced monitoring and investment tools and techniques to confidently handle the ever-growing variety of risks and increase efficiency and effectiveness."
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