New Research Uncovers the High Costs of 'Business
as Usual,' Underscoring the Need to Modernize Data Management
BOISE,
Idaho, Aug. 14, 2024 /PRNewswire/
-- Clearwater Analytics (NYSE: CWAN), a leading worldwide
provider of SaaS-based investment management, accounting,
reporting, and analytics solutions, today released its
comprehensive 2024 State of Investment Data Management study. The
study reveals valuable insights into the current and future trends
of investment data management. The survey, with contributions from
130 investment professionals including asset managers, wealth
managers, hedge funds, and OCIOs, represents a broad spectrum of
AUM ranges and reflects the diverse strategies and challenges
confronting investment professionals in today's complex market.
"In the face of our latest findings, it's a pivotal moment for
investment industry leaders to take decisive action and shift
toward smarter systems," said Scott
Erickson, Chief Revenue Officer at Clearwater Analytics.
"We're at a digital crossroads where clinging to legacy systems
like Excel isn't just inefficient, it's a sign of commercial
inertia. Firms spending up to 80% of their time on data collection
are misallocating their most valuable resource – time. This study
is a clear call to action: Accelerate the adoption of automation
and data management technologies to free up valuable time for
strategic initiatives that can significantly enhance client
satisfaction and loyalty."
Download the 2024 State of Investment Data Management study
today. Key findings in this study include:
Organic Investment Performance Reigns Supreme in Driving AUM
Growth
The study reveals that 60% of respondents are primarily focused
on organic investment performance to drive AUM growth. This finding
underscores the age-old belief that competitive returns are
fundamental to asset growth and that firms must not only maintain,
but also evolve their investment strategies to maintain an edge in
a crowded marketplace.
Client Engagement Emerges as the Dominant Driver of
Investment Flows
According to the study, client engagement is identified by 48%
of institutional investors as the most significant factor driving
investment flows. Successful firms understand that an investment in
technology systems that deepen client engagement is crucial for AUM
growth. This focus ensures that each interaction enriches the
client experience and solidifies trust and loyalty.
Time Drain vs. Tech Gain: The Critical Decision for
Investment Firms
The study finds that 44% of firms continue to rely on manual
tools, such as Excel, to aggregate and manage investment data for
client reporting, while 21.3% of firms are spending between 60-80%
of their time responding to client inquiries. Yet, the study also
reveals a notable reliance on outsourced third-party tools (41.2%),
illustrating the industry's trust in specialized solutions and
expertise. Firms lagging behind in this transition should consider
the benefits of accuracy and efficiency that investment management
technology offers, a potential area for immediate improvement and
crucial step towards market leadership.
"This study shows that firms cultivating and maintaining strong
relationships with clients are well positioned for the growth and
retention of assets. To optimize this dynamic, business leaders
should invest in technology systems that support deeper client
engagement, ensuring every interaction adds value and strengthens
trust," said Sunil Dixit, Chief
Product Officer at Clearwater Analytics. "At the core of this study
is an industry that's on a steady march towards a data-driven,
tech-savvy future. Those who have the foresight to invest in
cutting-edge technology and outsourced expertise stand to reap
substantial rewards."
To learn more about Clearwater Analytics, speak to an expert
today.
About Clearwater Analytics
Clearwater Analytics (NYSE: CWAN), a global, industry-leading
SaaS solution, automates the entire investment lifecycle. With a
single instance, multi-tenant architecture, Clearwater offers award-winning investment
portfolio planning, performance reporting, data aggregation,
reconciliation, accounting, compliance, risk, and order management.
Each day, leading insurers, asset managers, corporations, and
governments use Clearwater's
trusted data to drive efficient, scalable investing on more than
$7.3 trillion in assets spanning
traditional and alternative asset types. Additional information
about Clearwater can be found
at clearwateranalytics.com.
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SOURCE Clearwater Analytics