CEM is a leading data and insights firm. For us, high data integrity is non-negotiable. Our data strategy is built on a set of core principles that serve as our north star, guiding every decision we make. These principles are owned by our internal Data Governance Committee and revisited at least annually.
Unveiling the Story Behind Finovate Financial Group
Our execution rests on three pillars: industry-wide standards through our Global Reporting Principles (GRP), individual data integrity scores for each institutional investor, and ongoing investments in our team and internal processes. With over 30 years of experience, CEM employs custom systems and processes to identify and resolve data issues — always in close collaboration with our clients.
Our eight data principles
Our data integrity efforts are grounded in eight interconnected principles:
1. Completeness
While our preference is that all data is provided by institutional investors, we recognize that this is not always possible. To be included in the CEM database, the data must be unambiguous. We treat incomplete data as missing, rather than as zero or non-existent. We only construct benchmarks from complete, known, and relevant data points that do not require enrichment.
2. Comparability
We present all data and insights in a consistent context, across all key dimensions of comparison. Where there are unavoidable differences, we call them out.
3. Accuracy
We validate all data using a combination of our proprietary tools and expertise. If, in our professional judgment, specific data points are not of sufficient quality, we do not use them.
4. Confidentiality
We ensure that individual non-public data cannot be read or derived from publicly available CEM materials or CEM reporting, current or legacy. Any non-public, client-identifiable information that is shared is only done so with explicit client consent.
5. Providence
While we encourage client commentary, we hold ultimate decision rights on the structure of our analyses and application of data within them.
6. Timeliness
We provide insights on a timely basis, corresponding with the provision of the data from a client and its peers. We take all necessary steps to provide reliable delivery dates.
7. Transparency
We disclose all areas where we have enhanced and/or enriched data, including providing a summary of the approaches and the sources of the data used for the enhancement/enrichment.
8. Security
We take industry-standard precautions to ensure all data is protected from potential threats. If/when there is an incident, we act with pace, discipline, and open communication.
1. Living our data principles
In 2022, CEM embarked on a multi-year initiative to develop the Global Reporting Principles for the investment industry. Launched in 2024, these principles address a critical gap: while reporting standards existed in specific countries like Australia, the Netherlands, and the UK, the global institutional investment industry lacked a single consistent framework spanning performance, cost, and timing.
CEM worked with seven leading global pension funds to build these principles. They are designed to evolve over time, with future releases slated for 2026 and beyond. The release schedule allows for market feedback and gives institutional investors time to develop the systems, data, and personnel needed to act.
An insider’s purchase of company shares is often seen as a bullish signal, indicating confidence in the company’s future growth. On the other hand, insider sales do not necessarily suggest a bearish outlook, as they may be driven by various personal or financial reasons rather than concerns about the company’s performance.
The elements of GRP pertaining to public reporting were previously connected to the Global Pension Transparency Benchmark (GPTB), which assessed public reporting funds across fifteen countries on performance, cost, responsible investing, and governance. GPTB will conclude in 2025.
2. Data integrity scores for institutional investors
For over 30 years, institutional investors globally have provided CEM with fund cost, performance, and structure data. We carefully assess the quality of this data through a combination of validation rules and deep subject-matter expertise.
In 2024, we began quantitatively scoring the quality of data provided by each CEM-defined benefit pension fund client. Each client receives a scorecard covering performance data, cost data, and timeliness — and is invited to review their results and make improvements. The scoring framework is currently in beta testing.
3. Our team's seven-step validation process
CEM’s data principles are embedded directly into our systems, processes, and team training. Our data experts apply a seven-step process to validate all incoming data:
- Initial data intake and onboarding checks
- Application of automated validation rules and custom data tools
- Expert review by experienced CEM analysts
- Identification and flagging of anomalies and outliers
- Client follow-up and clarification where needed
- Enrichment or exclusion of data based on defined criteria
- Final quality sign-off before inclusion in benchmarking
In addition to these internal measures, CEM retains a leading third-party cybersecurity firm to conduct an annual information security assessment. All high and medium-risk items identified in the most recent assessment have been fully resolved.
Questions or feedback on our data integrity approach? We'd love to hear from you. Contact Us: product@cembenchmarking.com