New Research Uncovers Key Trends, Opportunities
and Challenges for Institutional Investors in Alternative
Investments
BOISE,
Idaho, May 30, 2024 /PRNewswire/ -- Clearwater
Analytics (NYSE: CWAN), a leading worldwide provider of SaaS-based
investment management, accounting, reporting, and analytics
solutions, today announced the release of its 2024 State of
Alternatives study. The report, encompassing over 230 executive
participants from sectors including insurance, wealth and asset
management, corporate and government entities, pensions and
endowments with $10 trillion in
assets under management (AUM), delivers an overview of the emerging
trends, opportunities and challenges related to alternative
investments.
"Alternatives remain one of the most intriguing asset classes
across the institutional investing space today," said Scott Erickson, Chief Revenue Officer at
Clearwater Analytics. "As investors continue to scan the
alternatives market for opportunities, numerous challenges and
trends have come into closer view. The 2024 State of Alternatives
study highlights key factors and developments that will shape the
alternatives landscape over the short-, medium- and long-
term."
Download the 2024 State of Alternatives study today. Key
findings in this year's report include:
Institutional Investors Plan to Increase Alternative
Investments
According to the study, 55% of institutional investors plan to
increase their alternative investments over the next five years,
while only 6% said they plan to decrease their alternative
investments. In addition, 35% of respondents said that they plan to
add to their alternative allocations based on current market
conditions.
Regulatory Complexity a Leading Barrier to Alternative
Investments
Per the study's findings, over a third of respondents (34%) said
that regulatory complexities were the leading hurdle in investing
in alternatives, followed by operational burdens/lack of expertise
(24%) and limited access to quality opportunities (15%).
Data and Reporting Present Biggest Operational
Challenges
Per the study's results, when asked what their biggest areas for
operational improvements were, 28% of respondents pointed to data
standardization, followed by management and/or client reporting
(19%), integration with service providers (19%) and better
regulatory reporting (16%).
Most importantly, the survey underscores a pressing need for
advancements in operational efficiency and software capabilities. A
whopping 72% of responses indicated a need to improve all of the
focus areas listed.
"We're not surprised by these findings. They indicate a clear
consensus around the importance of innovation in technological
infrastructure to support the growing complexity and scale of
alternative investment portfolios," said Jonathan Flitt, Global Head of Alternative
Investment Solutions at Clearwater Analytics. "Our respondents are
unanimous about needing better resources and technology to
efficiently manage alternative investments and mitigate the impact
of the mentioned barriers."
To learn more about Clearwater Analytics, speak to an expert
today.
About the 2024 State of Alternatives Study
Clearwater Analytics surveyed over 230 executives across the
institutional investor space, including insurers, wealth / asset
managers, corporates, government, pensions and endowments with
$10 trillion in assets under
management (AUM) during May 2024.
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