Portfolio integration key for expanding OMSs

Boosting order management systems with functionality to perform portfolio modelling and trade compliance will trend upward in coming years as asset managers expand their global footprint, a report from consultancy Aite Group has found.

Boosting order management systems with functionality to perform portfolio modelling and trade compliance will trend upward in coming years as asset managers expand their global footprint, a report from consultancy Aite Group has found.

The report, based on interviews with buy-side firms and reviews of 22 vendors, concluded that asset managers are expanding their reach worldwide, increasing demand for order management systems (OMSs) that integrates more advanced functionality.

The report found that integrated portfolio suite segment’s global market size is US$438 million, which will grow to US$471 million by 2017 at an annual average growth rate of 1.9%.

"Clients of integrated suites are generating the highest take-up of hosted deployments across this technology segment," Denise Valentine, senior analyst in institutional securities and investments at Aite Group, said.

She added that integrated portfolio system providers would continue to expand their global footprint as markets in Europe and Asia continued to perform well.

The report found vendors of integrated portfolio suites with trading capabilities tend to be large, established providers with significant numbers of clients and multiple product lines.

“While growth in the number of clients of full-suite adoptions is running at 17% over the last five years, revenue is not growing as fast due to competitive and client price pressures,” Valentine said.

The report also included reviews of 31 portfolio systems and buy-side feedback to capture direct user analysis.

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