Performance Attribution Modules of Portfolio Systems

Celent projects that new spending for performance modules with attribution will total US$43.8 million for 2004, with an estimated annual growth rate of 8.1 percent for 20042007 in the North American and European markets.

In a new report entitled , Celent examines seven vendors in this space, looking at solution components, attribution methods and models, and solution flexibility. This report also explores the current major trends in the marketplace and identifies future trends.

"Portfolio systems will help drive the adoption of performance attribution because of solution merit and the ease of adding a module to the existing portfolio system. Adding a module is often an opportunity to negotiate pricing, and asset managers may obtain lower costs for the performance solution than by seeking a new technology provider. This combination of merit and ease is attractive to asset managers searching for ways to keep costs down, enhance investment performance, and improve client servicing," says

Solution vendors profiled in the report are DST International, Eagle Investment Systems Corp., Financial Models Company Inc., INDATA, Integrated Decision Systems, SimCorp USA, and SunGard Investment Management Systems.

This report is part of a Celent series on investment performance attribution. See "The Science and Art of Performance Attribution for Investing, Servicing & Marketing," January 2004, for a detailed discussion of attribution trends, terms and usage, and "Specialist Vendors of Investment Performance Attribution," February 2004, which discusses vendor solutions that are not associated with a front-to-back portfolio system suite.

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of Celent Communications' Retail Securities & Investments, and Institutional Securities & 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.