Clearwater Analytics Study Reveals Client Engagement as Dominant Driver of Investment Flows

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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