Boston, July 28, 2011 – A new report from Aite Group provides insight into how asset management firms source and manage benchmark and index data. Based on a spring 2011 Aite Group survey of 18 asset management firms, the report sheds light on data sourcing and distribution, use of applications and third-party service providers, and spending trends and challenges.

Benchmark and index data is instrumental to asset management organizations seeking to capture and keep assets and launch new products. This information is a crucial component of performance attribution, risk management, and other practices among asset management organizations across a variety of asset classes and geographies. This data is leveraged across a variety of systems in an asset management organization, from accounting and order management to performance and risk. Benchmarks, often derived from one or more indices, are a key output of this data management process.

“Despite the importance of benchmark and index data, several issues create inefficiencies in this area, from lack of centralization to low levels of internal knowledge about this data,” says Fritz McCormick, senior analyst with Aite Group and author of this report. “To fully overcome these challenges, champions of benchmark and index data must elevate the importance of disciplined benchmark and index data management policies and procedures at their organizations. This includes the need for supporting business case documentation and lobbying the executive suite for necessary changes.”

This 16-page Impact Note contains 12 figures and one table. Clients of Aite Group's Institutional Securities & Investments service can download the report.