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Fund firms &#39must release more data to boost share prices&#39

Accountants PricewaterhouseCoopers is urging fund management groups to disclose more information about their businesses to reassure nervous investors and boost share valuations.

In a study published this week, PwC found that around half of fund managers in North America, Europe and the Asia-Pacific region believe their shares are underpriced, implying that analysts made a mistake when they valued them.

But PwC says investment houses often fail to disclose information which could drive the value of their company higher such as how the retention of fund managers affects bottom lines and what measures are in place to retain key staff.

It found that many analysts are frustrated with the amount of information companies regularly put forward on performance measures, which they believe are crucial to their ability to fairly assess a fund group.

For example, PwC discovered that fund firm executives generally consider asset growth from product cashflows to be an important indicator of an investment strategy&#39s success but rarely disclose this information to the marketplace.

Not only should investment houses disclose more comprehensive data, says PwC, but they should also make available greater amounts of non-financial information such as brand visibility, customer satisfaction and employee retention.

Partner Kelvin Laing-Williams says: “To differentiate themselves as value-creators, investment managers can and should adopt a more holistic approach to reporting.”

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