Portfolio Systems 2005 Series: Full Suites with FIX Trading

Celent anticipates that the global portfolio systems market will reach US$2.2 billion by 2008.

Portfolio Systems serve as the core infrastructure for investment management firms and divisions of banks and insurance companies. In the report " ," Celent compares 12 portfolio systems available in the US and Europe, explores the major trends in the marketplace, and details the latest features and functions of portfolio management systems.

The portfolio systems market is booming as a result of technological advances and new entrants in need of portfolio applications. Celent predicts that the global portfolio systems market will reach approximately US$2.2 billion by 2008, which is a modest 7.3 percent cumulative growth rate from 2005 to 2008 (See Figure 1).

"Portfolio system vendors must capitalize on their breadth of capability and market knowledge -- before Reuters or Bloomberg eat their lunch with scaled down solutions," saidDenise Valentine, senior analyst and author of the report. "Technology providers and broker-dealers have turned their attention to electronic trading, derivative securities, algorithm programs, analytics, and services. The asset manager will find increasing variety in what they can access through the front office and genuine value beyond accounting and management in these suites. Solutions with FIX trading capability and access to trade networks are best positioned for the new realm of service delivery. Not surprisingly, it is the midsized asset manager most eager to join in."

The report is the first of a series that will evaluate at least 20 portfolio systems. The following vendors are included in the study: Advent Software, Beauchamp Financial Technology, CheckFree Investment Services, DST International, Financial Models Company (acquired by SS&C), INDATA, Linedata Services, SimCorp, SS&C Technologies, SunGard, Thomson Financial, and Trema Group.

The solutions are evaluated and graded using Celents 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.

"The recent spur in mergers and acquisitions within the portfolio system market does not change the demand for this technology. Financial institutions may shift vendors to access broader capabilities or deeper functionality, but the mergers and acquisitions will more likely combine two systems with mediocre positioning, or a large well-resourced firm with a small firm's innovative product or capability," adds Valentine.

The 61-page report contains 15 figures and 14 tables. A table of contents is available online.

All Members of Celent's 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.