Reporting for Institutional 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.


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.

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