The Digital Truth
Meeting the realities of today's marketplace requires using the vast new technology available to distribute fund information more quickly, clearly, and accurately. Asset managers must exploit the potential of what I call "digital truth" - rapid, full information assembled by machines and systems with a minimum of human intervention, and human error.
Today's investors demand a geographical and asset diversification reflecting a financial market that follows the sun around the globe. They're also demanding more information about what they're buying and how it's doing - without a delay of days, weeks or even months, but instead delivered instantaneously. Regulators, too, are busy formulating new rules to make asset managers provide more information more quickly.
The new generation of digital technology provides revolutionary ways of distributing this information. Indeed, we are living in a brand new world. The things that were fulfilled years ago by a guy in a green eye shade who hand-manipulated data to deal with one investor's question - that is not the world we live in anymore. The solution is not to hire a thousand guys in green eyeshades, but to embrace information technology as the way forward.
Information technology is a machine, a system, and the digital truth "lives" here. Fund data, like everything else now, is digital, and it can be managed and represented accurately and instantaneously in this format. Indeed, errors are rarely introduced by machinery; generally, you can trace them back to human beings. The fewer hands involved in delivering information about money, the faster it will move, and the more investors will be able to trust its integrity.
The challenge for industry leaders today is to build "systems of truth" - organizational systems that provide the fiduciary responsibility necessary for investor information and confidence. These build expertise and business rules into the system, thereby eliminating human subjectivity or a risk of errors in fact or judgment. The stampede of information translates to having systems that can deliver the truth - by making sure that data is accurate, organized, flexible and scalable.
This is digital truth and it is the future of the asset management industry. Make sure you are part of it.