The long-term, steady growth of the OTC derivatives market is driving demand for portfolio management and accounting solutions with advanced risk analysis, over-the-counter derivatives handling, and valuation modeling.
Boston, MA, May 17, 2010 – A new report from Aite Group discusses multi-asset portfolio system vendors, with a focus on the enhancements made by these vendors over the last few years. The report identifies market trends among this peer group, and includes market sizing and forecasts for solutions with derivatives strength.
Driven by the long-term, steady growth of the over-the-counter (OTC) derivatives market and demand for portfolio management and accounting solutions with advanced risk analysis, over-the-counter derivatives handling and valuation modeling is increasing. While most of the vendors in this sector entered the market via hedge funds, traditional asset managers, insurance companies, sovereign wealth funds, and even pension funds are now using these solutions.
As the client base changed, and more significantly, as the needs changed, so too have the solutions. The natural progression for these vendors has been to expand solution capabilities beyond the risk/derivatives focus, for example adding capabilities in performance measurement, compliance, and reporting. Further, many vendors needed to develop buy-side work flows, portfolio features, and connectivity options, which the mainstream investment management market requires. Some have made needed improvements to standardize and speed up implementation, and the launch of ASP options lowered the price point for many prospects.
"Investment firms head into this decade with a driving need to rebuild revenues, demonstrate superior, consistent investment returns, and deliver on client servicing," says Denise Valentine, senior analyst with Aite Group and author of this report. "The core technology infrastructure of portfolio systems supports risk mitigation for both firms and portfolios. Investment firms considering introducing or expanding their use of OTC derivatives should carefully assess the solutions available to find the one best suited to their needs."
This report profiles multi-asset portfolio systems vendors including Calypso Technology, Imagine Software, Misys, Murex, Openlink Financial, SimCorp, Sophis, and SunGard.
This 48-page Impact Report contains six figures and 14 tables. Clients of Aite Group's Institutional Securities & Investments service can download the report.