Accurate and consistent reporting is vital to investors looking at manager data. When things “don’t add up” it can indicate a lack of attention to critical details, create confusion and raise questions. The most well-staffed firms with significant AUM can encounter reporting discrepancies due to oversight that can have adverse effects as a result. This case study explores how IMSS's expertise in database management and oversight identified and resolved a reporting inconsistency prior to database submission, allowing the manager to correct the issue internally and avoid similar issues going forward. Through our in-depth due diligence during the initial upload and reconciliation phase to us, we caught the error, resolved it promptly, and avoided any inaccuracy in reporting as a result.
Identifying the Inconsistency: Our client, a large investment firm with over $1.5B in assets and 18 employees, had some staff turnover. During our comprehensive review of a quarterly data files, we detected a potential discrepancy in the reporting of a representative portfolio for a specific strategy. The cash level and other correlated items in the uploaded characteristics file did not align with the representative portfolio being reported.
The Root Cause of the Issue: Delving deeper into the portfolio itself, our due diligence process revealed that the manager had recently changed the representative account for the strategy in question but failed to mention it. Looking at the corresponding data reflected in the characteristics and additional data points, in addition to marketing materials, brought us to recognize the inconsistency and recognize all other data was for a different account.
The Result: IMSS immediately addressed the issue with the client proactively and rectified the issue prior to any database uploads avoiding inconsistencies in reporting. Additionally, for investors sourcing analytics based off of portfolios, the corresponding data would have been incorrect. By collaborating with the team and alerting them to the issue, we ensured that the correct representative portfolio was identified and updated internally. This step was crucial in aligning the reporting across all marketing materials and databases, eliminating any confusion or discrepancies that could have negatively impacted the manager to potential investors. As a result of our deep due diligence and reconciliation of all data, the discrepancy was resolved before distribution to the databases.
For managers regardless of size, due diligence and oversight in data management is critical to avoid situations like this that can create confusion and raise questions by investors and consultants. IMSS's expertise and meticulous review process helped identify a reporting inconsistency that could have created issues for the manager. By catching an error during the initial upload phase, we avoided what could have added an extensive amount of extra time and resources to go back and correct tons of information across all databases.
At IMSS, we remain dedicated to providing exceptional data management services and ensuring accurate and consistent reporting for our clients. Contact us today to learn more about how our expertise can support your firm's data management needs and help you navigate the complexities of the financial landscape with confidence.