More than half, 57%, of asset owners cited a cybersecurity breach at a money manager as a key reason for an unplanned review of a mandate, according to a survey of 117 institutional investors conducted by CoreData Research that was released Tuesday.
The survey, which was conducted online in November, also showed that an increase in fees by a manager would also be a review trigger for 57% of the surveyed investors.
Some 54% cited a change at the fund manager as a review trigger as well. Nearly two-thirds, 63%, of the surveyed executives, which collectively have about £250 billion ($326.6 billion) in assets, said a change in the fund manager was more concerning for organizations with more than $3 billion in assets.
Half of the surveyed executives at pension funds, banks, insurance companies and sovereign wealth funds based in Asia, Europe and North America said a style drift was another reason to review a mandate, while 42% said a trigger would be a significant change in the fund's assets under management.
According to CoreData, about 37% of respondents saw negative news stories and 32% of respondents saw underperformance as reasons for unplanned reviews.
"These findings underscore just how important an issue cybersecurity and data protection has become for institutional investors," said Craig Phillips, head of international, in a news release. "Asset managers looking to win and retain long-term institutional mandates need to put cybersecurity at the top of the agenda and ensure their cybersecurity infrastructure and controls are robust and current," Mr. Phillips added.
