The Complexities of Non-Traditional Asset Classes

Investment accounting and reporting challenges

We are dedicated to keeping insurers up-to-date on the latest accounting guidance, regulatory changes, and industry topics. The resources below will provide investment and accounting teams with a better understanding of non-traditional assets' complex investment accounting and reporting considerations.

Futures

Understanding Asset Classes

Futures contracts were created to protect investors against the unpredictable investment market and to hedge against the risk of changing market rates. But they come with their own risks around accounting, reporting, and reconciliation. A clear understanding of futures’ complex accounting treatment, and the right investment accounting and reporting solution, are vital for any investor considering this non-traditional asset class.

The CLEARWATER GUIDE TO NON-TRADITIONAL
ASSET CLASSES

Investment Accounting and Reporting Considerations

Now with additional asset classes and considerations, including for multinational reporting, The Clearwater Guide to Non-Traditional Asset Classes provides valuable insight into 13 non-traditional asset classes, including direct mortgage loans, syndicated loans, options, futures, credit default swaps, and credit tenant loans. This guide contains basic definitions, common challenges, and GAAP and STAT reporting classifications and requirements, and multinational reporting considerations. This important information will help investment and accounting teams evaluate the implications of these complex assets as they consider incorporating them into their investment portfolios.

Direct Mortgage Loans

Understanding Asset Classes

Direct mortgage loans are a popular-and-growing investment choice among many insurance companies. As with any investment, insurers hoping to responsibly add direct mortgage loans to their portfolios need to understand the challenges of managing data integration, risk assessment, and illiquidity for this complex asset class.

Options

Understanding Asset Classes

In this low interest rate environment, options are becoming a more common investment. With a clear understanding of options' complex conditions and accounting treatment, and the right investment accounting and reporting solution, this asset class can prove to be much easier to manage than expected.

Syndicated Loans

Understanding Asset Classes

Syndicated loans (also known as bank loans) are traditionally thought of as uncommon investments. But according to Clearwater's 2014 Insurance Industry Benchmark Survey, 76% of insurers are now investing in syndicated loans, and another 24% have plans to add syndicated loans to their portfolio in the future.

These resources are intended to help inform investment and accounting teams on industry trends in the ever-changing investment landscape. This information should not be construed as legal, financial, investment, or tax advice.