Buyside Portfolio Management Systems


Buyside portfolio managers are faced with the challenge of balancing the conflicting requirements of investments, objective matching, asset allocations and balancing risk against performance. These requirements can be addressed by employing an automated Portfolio Management System (PMS) that navigates the complex landscape, supporting decision-making processes and implementing these decisions. This is a third report in a three part series.

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Portfolio Management Systems address user needs from a variety of functional perspectives including: portfolio capture; advanced analysis and portfolio modelling; data management; reporting; profit and loss calculations; and risk management.
GreySpark has surveyed and reviewed 15 vendor offerings in this space, independently analysing their software solutions across these categories to provide a transparent assessment of their various strengths and weaknesses.

GreySpark’s PMS review includes:

  • An analysis of the PMS function in the trading life cycle with respect to order and execution management systems.
  • A look into the current and emerging PMS landscape and how the expected direction of these systems lies primarily in the area of risk management as vendors respond to global trends.
  • A detailed examination of vendor solutions within the PMS space covering aspects of functionality, technology and product architecture with multiple graphical representations of each systems strengths and weaknesses.

“The buyside are under increasing pressure from regulators and clients, and we wanted to assess the technology landscape to establish a solid overview of how the main vendors can assist. Additionally, rising competition among vendors requires them to reconsider their market position and choose between specialisation and scale,” says Saoirse Kennedy, analyst consultant with GreySpark’s Capital Markets Intelligence unit and primary author of the report.

The report examines how the trading life cycle is automated, in part, by portfolio, order and execution management systems, navigating a complex environment characterised by volatility and regulatory overhaul. Areas of overlapping functionality between the three systems are acknowledged but consolidation of the three is not considered a likely outcome.

It also explores procurement options offered by vendors, which include licence, usage and module alternatives that may be provided on a module-by-module basis or as a complete package.

Highlighted in the report is the fact that almost half of the PMS vendors surveyed are planning to add more risk management capabilities to their software offerings as investment managers face increasing regulatory reporting burdens.

Published on: 13 Feb, 2013

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Buyside Portfolio Management Systems – Table of Contents

  • 1.0 Three Systems Automate the Trading Cycle
    • 1.1. Order Management Systems and Workflow Management
    • 1.2. Execution Management Systems and Trade Optimisation
    • 1.3. Portfolio Management Systems and Asset Management
  • 2.0 Vendor Responses to Global Trading Trends
    • 2.1. PMS Procurement Models
    • 2.2. PMS Functional Coverage
  • 3.0 The Current and Emerging PMS Landscape
    • 3.1. Regulatory Changes Impacting Portfolio Management
    • 3.2. Future Development Focuses on Strengthening Core Functionality
  • 4.0 Evaluation of PMS Solutions
    • 4.1. Vendor Offering – Comparison Sheet
    • 4.2. Vendor Evaluation Sheets