A new report from Aite Group, profiles select portfolio management and accounting (âportfolio systemsâ) vendors that have a significant, established presence in the European market. The report also sizes the European portfolio systems market in relation to the global market. This is the second report in Aite Groupâs ongoing series on portfolio management and accounting systems â solutions that form the core infrastructure for asset managers of all types.
A pension crisis is well underway in Europe. The largest European pension markets â the U.K. and the Netherlands â are reportedly underfunded, with funding ratios of 80% and 95%, respectively, at the end of 2008. As asset managers are increasingly challenged in helping clients meet objectives, alternative products and more conservative fixed income products will play a larger role in investment allocations, particularly while equity markets remain volatile.
In response to a changing marketplace, which includes more demanding clients, increased regulation, and greater competition, vendors in Europe are enhancing or even revamping their solutionsâ user interface, improving reporting capabilities, compliance, and performance/risk analytics as well as operational improvements in SWIFT messaging and derivative handling. Modernizing solution architecture has also been a priority.
âVendors must adjust development priorities and staff allocations, perhaps even closing small branch offices to accommodate a tightening market,â says Denise Valentine, senior analyst with Aite Group and author of this report. âWhere budgets and resources avail, leading vendors must stay abreast of current technology and demonstrate client commitment through solution improvements. As more non-European vendors evaluate regions for future sales and further commit resources, they must stay current to appeal to new markets. The market is bound to become more competitive as vendors seek â and are forced to capture â enough new business to stay in the game.â
The report profiles eight vendors and nine products that have 50% or more of their product client base in Europe and 50% or more of their client base serving the asset management community. The products profiled include ERI Bancaireâs Olympic, IGEFIâs MultiFonds, Linedataâs Chorus and Icon, SimCorpâs Dimension, Sophisâs VALUE, SS&Câs Altair, SunGardâs Asset Arena, and TRADARâs INSIGHT. It also references additional vendor solutions that have at least 5% of their clients in Europe.
This 57-page Impact Report contains eight figures and 15 tables.