Data in the new report shows mean durations and fees helping asset managers better quantify opportunities and predict client lifetime value.
Pittsburgh, PA, July 20, 2023 – Investment Metrics, a Confluence company, (“Confluence”), the leading global provider of investment analytics, reporting, data, and research solutions, today released its first-of-its-kind Client Lifetime Revenue Report, an analysis of account duration and post-negotiated fees of 30k plans and $7.5 trillion of institutional assets to assess which vehicles and plan types yield more lifetime revenue. The data can help asset managers identify opportunities, launch appropriate vehicles and value existing accounts.
The report is an example of the type of insights asset managers can gain from a new product to be launched later this year. The inaugural report finds Taft-Hartley defined benefit, separate account, and debt accounts were almost three times as sticky – defined as the duration that an investment manager holds the specific account – as public defined benefit, mutual fund, debt accounts, were the least sticky category. Other findings found in the report include the stickiness of foundations & endowments, separate accounts, commingled, and mutual funds.
When the tool is released, it will allow asset managers to predict revenue and cash flow, which has been a long-standing challenge for them. Part of the difficulty is that asset managers need many factors to have favorable mandate longevity yet most of those factors are outside their control and visibility. The platform provides intelligence on which vehicles and plan types yield more lifetime revenue enabling asset managers to prioritize opportunities, launch appropriate vehicles and value existing accounts.
Damian Handzy, Managing Director, Analytics at Confluence, said:
“This brand-new report exemplifies the breadth and depth of data and analytics we have to help asset managers answer critical questions about their investment portfolios. We are excited to offer the full breadth of market intelligence in the coming months.”
Click here to read Confluence’s Institutional Client Lifetime Revenue report.
About Confluence
Confluence is a leading global technology solutions provider committed to helping the investment management industry solve complex data challenges across the front, middle and back offices. From data-driven portfolio analytics to compliance and regulatory solutions, including investment insights and research, Confluence invests in the latest technology to meet the evolving needs of asset managers, asset owners, asset services, and asset allocators to provide best-of-breed solutions that deliver maximum scalability, speed, and flexibility, while reducing risk and increasing efficiency. Headquartered in Pittsburgh, PA, with 900+ employees in 15 offices across the United Kingdom, Europe, North America, South Africa, and Australia, Confluence services over 1000 clients in more than 40 countries. For more information, visit www.confluence.com.
