A new report on Monday released by Aite Group, an independent financial research and advisory firm, focusses on trends in the adoption and use of portfolio accounting systems by hedge funds. The report provides a comparison of five vendors' portfolio management and accounting systems.
Aite Group finds that four of the five vendors profiled - all of which have revenues in excess of $200 million - are experiencing strong growth in their client base. The firms have all been in the business of providing asset management technology - whether serving hedge funds, prime brokers or fund administrators - for more than a decade. Though the portfolio systems market is a mature sector in asset management technology, these vendors are in a continuous state of change to keep pace with clients, expanding the solution's breadth of capabilities over time. While these solutions do not offer advanced risk analytics and valuation modeling today, Aite Group reports that this will likely change in the future as OTC derivative use continues to increase.
"The portfolio accounting system vendors profiled have made significant changes to their offerings over the last few years in order to better penetrate the hedge fund market," says Denise Valentine, senior analyst, Aite Group and author of this report. "So far, their efforts - which include acquisitions, partnerships, and major enhancements to solution architecture and functionality - have been successful. However, there is plenty of new competition in this market and these leading vendors must remain vigilant," she adds.