Reporting For Institutional Investments

Investment Accounting For Institutional Investors

Investment accounting for institutional investors is the process of tracking and reporting the performance of investments made by institutions such as banks, pension funds, insurance companies, and endowments. This involves the measurement and reporting of all investments, including stocks, bonds, mutual funds, real estate, and other alternative investments.

What is Investment Accounting for Institutional Investors?

Institutional investors, such as insurance companies, endowment funds, commercial banks, hedge funds, and mutual funds, are organizations that invest money on behalf of their clients or members. Institutional investors extensively research a variety of investment opportunities and use a combination of strategy and market intelligence to create high yield investment portfolios. Institutional investors often move the largest positions daily and are a driving force behind supply and demand in the securities market and price movements in stocks, bonds, and other types of assets. According to Yahoo! InvestorPlace, institutional investors make up around 90% of all stock trading activity.

Why is Investment Accounting for Institutional Investors important?

Investment accounting for institutional investors can often be a tedious task, with large teams of people working across siloed systems, gathering data from a plethora of trading systems, completing manual data clean up and reconciliation resulting in the inability to deliver high quality data the team can trust. All this makes reporting a nightmare. Accounting for institutional portfolios often requires teams of people that gather, aggregate, and reconcile investment data. Once collected, investment accounting teams report and analyze the portfolio data and provide reports based on a general ledger of investments, performance, risk, compliance, board presentations and regulatory applications. Because institutional investors deal with large amounts of trades daily, investment accounting teams need a system that provides them with access to accurate, timely, and comprehensive information. With Clearwater Analytics, teams can now automate their investment accounting process, improve accuracy, and free up time for more strategic work. The automation of these tasks significantly decreases human errors and inefficiencies, which helps improve business performance by generating faster, actionable, more accurate investment reports.

FAQs About Reporting for Institutional Investments

Who Is Required To File A 13F?

The Securities and Exchange Commission requires any asset manager who holds more than $100 million in qualifying securities to file a 13F. This includes any registered investment advisor, hedge fund, or other private fund.

How Do I Track My Institutional Investments?

Tracking your institutional investments can be done in a few simple steps. You can obtain a copy of your most recent statement from your financial institution. This statement will provide you with a detailed list of all your investments, as well as their current values. You can then use this information to track your investments over time. Additionally, you can set up an online account with your financial institution, which will provide you with a secure platform to track all your investments in real-time. This will allow you to quickly and easily monitor the performance of your investments and make necessary changes as needed. Additionally, you could consider using a portfolio tracking software to help you keep track of your investments and ensure that you are making the most of your money.

What Are 13F Reportable Securities?

13F reportable securities are securities that must be reported on a Form 13F filing with the SEC. These securities include equity securities, such as stocks and options, that are held by institutional investment managers with at least $100 million in assets under management.

How Often Does Form 13F Need To Be Filed?

These filings are required to be made within 45 days after the end of the calendar quarter, meaning that Form 13F must be filed four times a year. The information included in the filing must include a list of all the securities that the manager holds, as well as the amount of each security they own.

How does Clearwater Analytics help?

Clearwater provides the infrastructure institutional investors need to responsibly manage investments, diversify asset classes, and scale with any data management needs that may arise in the future. Investors need to have access to the most accurate, timely, and integrated portfolio data available to make informed decisions, drive periodic reporting requirements, and maintain ongoing portfolio analysis. Clearwater offers investment accounting for multiple asset classes and currencies to accommodate institutional investors’ needs across the globe. The system can be configured to any accounting basis including GAAP, Statutory, Tax, IFRS, and others. Easily customize disclosure reports and other standard balance sheets, income statements, and roll-forward reports. You can group data on multiple levels, write formulas, pivot, and add or remove non-module-specific data points. Accounting information can be pulled into varying types of reports, like risk and performance, to allow for a more comprehensive analysis. Learn more about how Clearwater Analytics can help with investment accounting and reporting by scheduling time to speak directly to an expert.