Portfolio Systems 2005 Series: The Intermediary Market

September 7, 2005

Abstract

New York, NY, USA September 7,  2005

Celent predicts the global portfolio systems market will grow to US$2.2 billion by 2008.

The portfolio systems market is active as a result of technological advances and new players in need of portfolio applications. Celent predicts that the global portfolio systems market will grow to US$2.2 billion by 2008, a 7.3 percent growth rate for 2005-2008. The intermediary market will spend US$72 million on these solutions, approximately 4 percent of global technology spending.

In this report, " ," Celent compares nine portfolio systems available in the US and Europe. The report details the latest features and functions of these portfolio management systems and discusses the current trends in the market concerning third party administrators, prime brokers and custodians.

The solutions are evaluated and graded using Celent’s new ABCD analysis which provides a relative measurement based upon the solutions’ Advanced technology, Breadth of features and functionalities, Client base and Depth of client service.

"Vendors serving the intermediary market must provide depth in their solutions, specifically in accounting, reporting, and work flow functions," saidDenise Valentine, senior analyst and author of the report. "As a provider to the asset management community, intermediaries serve a diversified client base. Top of the line capabilities are critical for intermediaries since wrong decisions may have ramifications for the overall client relationship. The intermediary is held responsible for the solutions’ performance, the product development cycle and any troubleshooting."

"There is a relatively limited and shrinking universe of intermediary service providers for vendors to pursue. The last few years have been a period of market consolidation, primarily reflected in acquisitions from the fund administration segment. Accordingly, fund administration in the not too distant future will resemble the relatively small roster of major providers we see in the prime brokerage and custodial segments," she added.

The report is part of a series evaluating at least twenty portfolio systems. The following vendors are included in the study: Advent Software, Beauchamp Financial Technology, DST International, Eagle Investment Systems, FRI Corporation, Integrated Decision Systems (now owned by CheckFree Corporation), Linedata Services, Princeton Financial Systems, and SunGard.

The 49-page report contains eleven figures and twelve tables. A table of contents is available online.

of Celent's Securities and Investments research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information

        

Send mail to info@celent.com with questions or comments about this Web site.

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 subsidiary 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

New York, NY, USA September 7,  2005

Celent predicts the global portfolio systems market will grow to US$2.2 billion by 2008.

The portfolio systems market is active as a result of technological advances and new players in need of portfolio applications. Celent predicts that the global portfolio systems market will grow to US$2.2 billion by 2008, a 7.3 percent growth rate for 2005-2008. The intermediary market will spend US$72 million on these solutions, approximately 4 percent of global technology spending.

In this report, " ," Celent compares nine portfolio systems available in the US and Europe. The report details the latest features and functions of these portfolio management systems and discusses the current trends in the market concerning third party administrators, prime brokers and custodians.

The solutions are evaluated and graded using Celent’s new ABCD analysis which provides a relative measurement based upon the solutions’ Advanced technology, Breadth of features and functionalities, Client base and Depth of client service.

"Vendors serving the intermediary market must provide depth in their solutions, specifically in accounting, reporting, and work flow functions," saidDenise Valentine, senior analyst and author of the report. "As a provider to the asset management community, intermediaries serve a diversified client base. Top of the line capabilities are critical for intermediaries since wrong decisions may have ramifications for the overall client relationship. The intermediary is held responsible for the solutions’ performance, the product development cycle and any troubleshooting."

"There is a relatively limited and shrinking universe of intermediary service providers for vendors to pursue. The last few years have been a period of market consolidation, primarily reflected in acquisitions from the fund administration segment. Accordingly, fund administration in the not too distant future will resemble the relatively small roster of major providers we see in the prime brokerage and custodial segments," she added.

The report is part of a series evaluating at least twenty portfolio systems. The following vendors are included in the study: Advent Software, Beauchamp Financial Technology, DST International, Eagle Investment Systems, FRI Corporation, Integrated Decision Systems (now owned by CheckFree Corporation), Linedata Services, Princeton Financial Systems, and SunGard.

The 49-page report contains eleven figures and twelve tables. A table of contents is available online.

of Celent's Securities and Investments research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information

        

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