Clearwater Selected by Franklin Templeton to Accelerate Stable Value Fund Management

Rhea-AI Summary

Clearwater Analytics (NYSE: CWAN) has been chosen by Franklin Templeton to enhance its stable value fund management. The Clearwater for Stable Value solution will provide Franklin Templeton with scalable investment technology, daily portfolio insights, and specialized capabilities to support its expansion into separate accounts and new mandates. This partnership aims to drive growth within Franklin Templeton's stable value fund business by offering enhanced tools for managing complex fund structures, securities, and specialized accounting treatment.

The collaboration will enable Franklin Templeton to improve processes, increase transparency, and facilitate communication with industry counterparts. Clearwater's solution includes features such as contract value accounting, crediting rate calculations, and contract trading within a comprehensive web-based platform. This selection by Franklin Templeton underscores Clearwater's position as a leading provider of SaaS-based investment management solutions, serving various sectors including insurers, asset managers, corporations, and governments.

Positive

• Clearwater Analytics secured Franklin Templeton as a new client for its Stable Value solution
• The partnership aims to drive growth in Franklin Templeton's stable value fund business
• Clearwater's solution provides scalable investment technology and daily portfolio insights
• The platform offers specialized tools for managing stable value portfolios
• Clearwater's client base includes major sectors like insurers, asset managers, and governments
• Clearwater manages over $7.3 trillion in assets across traditional and alternative asset types

Negative

• None.

Insights

Financial Analyst

Clearwater Analytics securing Franklin Templeton as a new client represents a significant development in the realm of stable value fund management. The deployment of Clearwater for Stable Value is expected to enhance operational efficiency and provide a scalable investment technology. This move could allow Franklin Templeton to expand its stable value business more effectively.

From a financial perspective, this partnership could have a positive impact on Clearwater's revenue and long-term growth prospects. Clearwater’s SaaS-based solutions cater to the unique needs of stable value funds, a niche yet growing segment within the investment management industry. Additionally, Franklin Templeton's acknowledgment of the need for improved technology and operational efficiency underscores the strategic benefits of this partnership.

The scalable nature of Clearwater's technology means that as Franklin Templeton grows its stable value funds, Clearwater stands to benefit from an increased client footprint and potential upsell opportunities. For retail investors, this partnership signals confidence in Clearwater's technology and its ability to address complex investment needs.

Market Research Analyst

The stable value fund market, although less publicized compared to other investment vehicles, offers a low-risk, conservative investment option primarily used within retirement plans. By leveraging Clearwater's advanced technology, Franklin Templeton can offer better transparency and more efficient management of these funds. This could increase investor confidence and potentially attract more inflows into their stable value products.

The partnership also highlights an evolving trend where asset managers are increasingly turning to technology-driven solutions to gain a competitive edge. For Clearwater, securing a name as prominent as Franklin Templeton further validates their product's value proposition and could attract additional clients from the asset management space.

For retail investors, it's important to note that the stable value fund market's performance is closely tied to the overall interest rate environment and economic stability. Clearwater's solution offering enhanced data insights could provide Franklin Templeton with a significant advantage in navigating these factors effectively.

Clearwater for Stable Value Will Provide Scale, Transparency and Operational Excellence for Franklin Templeton's Stable Value Business

BOISE, Idaho, July 16, 2024 /PRNewswire/ -- Clearwater Analytics (NYSE: CWAN), a leading worldwide provider of SaaS-based data investment management, accounting, reporting, and analytics solutions, today announced global investment manager Franklin Templeton has selected Clearwater for Stable Value to help drive the growth within its stable value fund business.

As part of this arrangement, Clearwater for Stable Value will provide Franklin Templeton with scalable investment technology, daily portfolio insights, and stable value-specific capabilities to support its expansion into separate accounts and new mandates. Franklin Templeton's team will leverage this enhanced technology to effectively handle the nuanced aspects of managing stable value funds, including complex fund structures, securities, and specialized accounting treatment.

Partnering with Clearwater empowers stable value managers to enrich their processes, enhance transparency in their investment data, and facilitate communication with industry counterparts. Additionally, end users can access a range of specialized tools to manage stable value portfolios such as contract value accounting, crediting rate calculations and resets, and contract trading, all within a comprehensive, web-based solution.

Steven A. Horner, CFA, and Jo Anne Ferullo, CFA, Portfolio Managers with Franklin Templeton Fixed Income and co-leaders of the firm's Stable Value business, look forward to the scalability and growth potential provided by Clearwater's solution. "As we see significant opportunity to continue to expand our stable value business, fortifying our investment technology for the future has become a top priority, and Clearwater for Stable Value will be instrumental in unlocking this growth," said Mr. Horner. While Ms. Ferullo commented, "We believe engaging Clearwater will help favorably position us for growth and operational efficiency, with its next-generation technology focused on supporting our stable value fund management needs."

"Clearwater Analytics is pleased to count Franklin Templeton as a new client for our Clearwater for Stable Value solution. Stable value funds have unique data management, accounting, reporting, and operational needs that don't fit within the same box as other investment types," said Scott Erickson, Chief Revenue Officer at Clearwater Analytics. "For this reason, Clearwater has built a single, integrated technology solution with the needs of stable value fund managers, wrap issuers, and other market participants in mind. Clearwater's automated feeds bring data together so front and back-office teams have what they need for reporting and analysis. Our solution is backed by a dedicated partnership focused on enabling our clients' growth and success."

To learn more about Clearwater Analytics, speak to an expert today.

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

FAQ

What is the purpose of Franklin Templeton selecting Clearwater Analytics (CWAN)?

Franklin Templeton selected Clearwater Analytics to accelerate and enhance its stable value fund management, leveraging Clearwater's scalable investment technology and specialized capabilities to support expansion into separate accounts and new mandates.

What specific solutions will Clearwater (CWAN) provide to Franklin Templeton?

Clearwater will provide Franklin Templeton with its 'Clearwater for Stable Value' solution, offering scalable investment technology, daily portfolio insights, and stable value-specific capabilities such as contract value accounting, crediting rate calculations, and contract trading.

How much in assets does Clearwater Analytics (CWAN) manage as of July 2024?

As of July 2024, Clearwater Analytics manages more than $7.3 trillion in assets spanning traditional and alternative asset types for its clients.

What are the key benefits for Franklin Templeton in using Clearwater's (CWAN) solution?

Key benefits include enhanced processes, improved transparency in investment data, facilitated communication with industry counterparts, and access to specialized tools for managing stable value portfolios, all aimed at driving growth and operational efficiency.