Regardless of whether you call it Client Reporting or Client Communications, investment managers are seeing increased activity in this functional area based on current market conditions, increased regulatory scrutiny, and client expectations. This edition of Citisoft Industry Perspectives looks at the current challenges in client communications and brings together topics and thoughts from a number of recent industry conferences that were chaired by Citisoft, in addition to feedback from our client bases in the US and Europe.
Industry Perspectives provide readers with thought-provoking content and insight into Investment Management technology and operations, leading industry practices, and the challenges facing the global investment management community.
The 2011 budget season is wrapping up and while spending levels for technology and operations initiatives in the investment management industry aren’t likely to approach those of 2006-2008, there are signs that the industry’s tone has changed from trepidation and stagnation to one of optimism and progress. This edition of Citisoft Industry Perspectives examines the themes and business drivers shaping our industry in its quest to return to vitality in 2011.
Price is only a concern in the absence of value. What better statement of purpose is there for the buy-side post-credit crunch? The investment management industry is once again squarely focusing on revenue growth but doing so in the "new normal" business climate that is marked by consistent price pressure, risk aversion, and continued volatility.
In 2009, investment management merger, acquisition, and divestiture activity accelerated rapidly in the name of economic survival and competitive positioning. In 2010, high-profile acquisition activity is expected to continue. Throughout the industry, acquiring or acquired firms are facing the acute challenges associated with integrating their operations and technology platforms for 'Legal Day One' and beyond.
Investment management firms have invested heavily in strategic business applications over the past two to three years but discretionary spending cutbacks have left many projects on-hold or subject to limited deployment. As a result, strategic projects have fallen short of their expected ROI. With spending expected to take three plus years to return to 2007 levels, unlocking the hidden potential of these stalled or incomplete strategic deployments may prove to be an organization’s most potent and pragmatic enablers for optimization.
With the substantial functionality, database and technology changes inherent in Thomson Reuters' current and future releases of PORTIA, hundreds of investment managers are faced with a complex, non-trivial upgrade effort that is actually more akin to a new system implementation. Given the complexity and business risk associated with such an invasive, high-profile technology initiative, how do firms ensure implementation success? Citisoft is assisting some of the industry's largest, global PORTIA users define and execute their upgrade and conversion strategies.