The Cost Basis Reporting Vendor Landscape 2011

by Alexander Camargo,  Isabella Fonseca, November 11, 2011
Vendor Reviews
North America

Abstract

Cost basis reporting vendors continue to work toward compliance for 2012 and 2013 regulations. Celent expects an increased number of firms and vendors to focus on value-add aspects of cost basis reporting, such as tax management tools, client-facing tools, and integration with other systems going forward.

In a new report, The Cost Basis Reporting Vendor Landscape 2011, Celent examines the current market for cost basis reporting solutions in North America and profiles and benchmarks the offerings of nine vendors in this space.

The providers covered in this report are: Broadridge, DST Systems, Eagle Investment Systems, NetWorth Services, Scivantage, SunGard, Thomson Reuters, and Wolters Kluwer Financial Services. The profiles include differentiators and disadvantages of each solution.

“Cost basis reporting vendors are obviously focusing on meeting compliance requirements for mutual funds in 2012 and fixed income products in 2013. But we also expect firms to begin thinking about ways in which cost basis reporting can transition from being a necessary compliance tool to a value-add solution,” says Isabella Fonseca, Research Director at Celent and coauthor of the report.

“Moving forward, we expect firms to look for ways to leverage cost basis data,” says Alexander Camargo, Celent Analyst and coauthor of the report. “This data is particularly useful for statement generation, performance reporting, tax management, and on help desk UIs. Integration between CBR solutions and other systems within each firm will become an increasingly high priority.”

The report begins with an overview of cost basis reporting and the criteria for participation in this report. A detailed profile for each CBR vendor follows, identifying its strengths and weaknesses. Also included in the study is the vendor comparison section, which evaluates each solution’s features and functionalities and further compares vendors by various functionalities. The last sections include Celent’s view as to how cost basis reporting technology vendors can differentiate their offerings and an evaluation of vendor strengths in these areas of differentiation. Celent also examines where cost basis reporting is headed.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

5

 

Research Methodology

5

 

Criteria for Participation

7

Vendor Preview

8

Vendor Profiles–Stand-Alone Solutions

10

 

Broadridge

10

 

NetWorth Services

12

 

Scivantage

14

 

SunGard

15

 

Wolters Kluwer Financial Services

17

Vendor Profiles–Hybrid Solutions

20

 

Eagle Investment Systems LLC

20

 

Silver Management Group Inc.

21

Vendor Profiles–Comprehensive Solutions

24

 

DST Systems

25

 

Thomson Reuters

25

Vendor Comparisons

28

 

Basic Technology

28

 

Clients

29

 

Basic Functionality and Administrative Tools

30

 

Tax Lot Matching

31

 

Corporate Actions Processing

32

 

Reconciliation.

34

 

Automatic Support and Reprocessing

35

 

Transfers

36

 

Beyond Compliance

37

How Can Vendors Differentiate?

39

Looking Forward

42

Leveraging Celent’s Expertise

44

 

Support for Financial Institutions

44

 

Support for Vendors

44

Related Celent Research

45

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