Research shows importance of client engagement for investment flows
15 August 2024 UK
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Research from Clearwater Analytics has shown that the buy side now considers client engagement as the key driver of investment flows.
According to the report, 48 per cent of buy side participants, including asset managers, hedge funds, and wealth managers, believe client engagement to be the primary driver, rather than performance (30 per cent).
Clearwater Analytics points to a rise of passive investing and the rise of ETFs as the underlying factors creating this shift.
The survey also highlighted that 44 per cent of respondents are overly dependent on Microsoft desktop tools, such as Excel, in managing investment data.
Sam Idle, solutions consultant at Clearwater Analytics, comments: “The formula for effective client reporting simply isn’t going to be found in Microsoft Excel, not with the amount of data that asset managers now have to grapple with.
“To produce both regular and bespoke client reports that are going to differentiate an investment manager from their competitors, the tools they rely on to aggregate and manage the vast swathes of data being used have to be more advanced than archaic Excel spreadsheets scattered across an organisation’s IT infrastructure.”
According to the report, 48 per cent of buy side participants, including asset managers, hedge funds, and wealth managers, believe client engagement to be the primary driver, rather than performance (30 per cent).
Clearwater Analytics points to a rise of passive investing and the rise of ETFs as the underlying factors creating this shift.
The survey also highlighted that 44 per cent of respondents are overly dependent on Microsoft desktop tools, such as Excel, in managing investment data.
Sam Idle, solutions consultant at Clearwater Analytics, comments: “The formula for effective client reporting simply isn’t going to be found in Microsoft Excel, not with the amount of data that asset managers now have to grapple with.
“To produce both regular and bespoke client reports that are going to differentiate an investment manager from their competitors, the tools they rely on to aggregate and manage the vast swathes of data being used have to be more advanced than archaic Excel spreadsheets scattered across an organisation’s IT infrastructure.”
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