Standard Data Delivery Sheet Q&A

This year one of INREV’s main projects will be to introduce the Standard Data Delivery Sheet (SDDS). The following Q&A outlines the basic premise behind the project and updates you on how it works and when it will be introduced.

What is the Standard Data Delivery Sheet (SDDS)?

The aim of the project is to encourage the use of a standard set of data in order to enable an efficient exchange of information between fund managers and investors on a quarterly basis. It is useful to think of this project as being in a similar vein as the Due Diligence Questionnaire but at the reporting stage of a fund. The aim is to encourage investors to ask for the same set of data from all their fund managers to streamline regular information flows between the two sides.

The aim is to encourage investors to ask for the same set of data from all their fund managers to streamline regular information flows between the two sides.

How will it work?

The SDDS covers some general information on the fund but mostly quarterly data on a fund level for the particular investor. The data sheet will have some general fund level data such as contact details, first closing, and the investment period etc, which is data that will not change on a quarterly basis. Then it will include fund level data that needs to be updated each quarter such as value, reconsolidation from reported net asset value (NAV) to fair value, quarterly results of fund, financing, performance and portfolio information. Finally, it will include investor level data, which is specific for each investor, depending of their share in the fund.

How was the SDDS developed?

INREV has been working with key investors in the industry to understand the basic information needs on a quarterly basis. We also set up a working group, which has active participants from investors, fund managers and advisors, to support the development of the SDDS. In November 2011, we organised a workshop in Amsterdam with members which gave us feedback on whether this was a viable project for fund managers, how the information should it be collected and other feedback from members to support its development.

What is happening with the SDDS currently?

Feedback from the workshop demonstrated that there are two key success factors for the SDDS. The first is the definitions used in the SDDS and the second is investor acceptance of the new standard. Along with the working group, we are addressing both these issues.

We are now working on ensuring that we have clear definitions and explanations of the different items to guarantee true standardisation. INREV definitions will be used where possible, although the working group acknowledges that some items could do with better explanations or examples. For the definitions that are missing the working group is now looking at other definitions used in the market.

Once this process is complete, we will discuss the updated SDDS with INREV investor members. This will be done through one-on-one conversations undertaken by the working group. This review is to confirm that the SDDS provides investors with the necessary information and that they are willing to accept this as the new standard for the industry.

What are the next steps for members?

To ensure that the SDDS is right for the industry, it will first be released through a White paper. This will be followed up with several local round table discussions to gather views from members and we will also encourage individual feedback. The White paper stage also gives members the chance to discuss this internally to understand how it could be integrated with current reporting processes.

We are aiming to release the White paper in April and will then spend May and June in consultation with the industry. Any changes resulting from these discussions will be incorporated with a planned release date of the final document in after the summer.

How can I find out more information?

Professional Standards at INREV, for more information on professional.standards@inrev.org