The global portfolio management system market is projected to witness a compounded annual growth rate of 10.17% to grow to US$26.440 billion by 2027, from US$13.424 billion in 2020. Portfolio management is the practice of creating and managing a portfolio of investments to fulfil investors' long-term monetary goals and risk management. Active portfolio management entails systematically buying and selling shares and other assets to outperform the market. Many people face several obstacles when it comes to managing their money and investments. A portfolio management system, which assists organizations in effectively managing and often conflicting projects, may efficiently solve these concerns.
Some of the primary drivers propelling the portfolio management system market include an increase in the emphasis on the fact-based planning process, a rise in the competitive marketplace, and an increase in the output level of resources. High expenses and operational difficulties, on the other hand, are two major challenges for the market. Furthermore, the industry is likely to benefit from increased demand from emerging prospective economies as well as the introduction of new technologies. In addition, the growing requirement for firms to increase their business efficiency is propelling the portfolio management software market forward. For instance, in December 2021, Allvue Systems, a premier investment management technology solutions company, announced a major alliance with Mirador, LLC to enable limited partners, such as endowments, trusts, and pension funds, to effectively manage their technology and processes. Mirador provides impartial reporting, information management, and technical advisory services, leveraging best-in-class third-party reporting technologies to assist customers in identifying benefits and threats in their portfolios. Allvue's LP Portfolio Management (LPPM) solution, the company's fully integrated system that lets limited partners undertake different office activities, would be supported by Mirador. Mirador would provide LPs with assitance on how to get the most out of the LPPM system as a recognized services company.
Growing technological advancement
Growing technological advancements are a major factor expected to propel the global portfolio management system market. With more data flows to maintain than ever before, enterprises must have access to a technological platform that provides extensive portfolio management systems. For instance, in April 2022, Everence announced at its National Conference that it had joined Smartleaf Asset Management LLC to offer Everence clients an enhanced direct indexing investment alternative with increased tax management and value-based investing options. SAM will also increase Everence's operating effectiveness across the board, allowing the Everence team to provide better service to all clients. The cooperation allows Everence to expand on a solid basis by offering its clients unparalleled customization and tax management advantages that optimized direct indexes provide. SAM's technology allows the company to easily integrate direct indexing into its existing investment strategy.
Furthermore, businesses and investors demand reliable, comprehensive portfolio and reporting information as ESG investments and the larger ESG sector undergo radical change. The ESG Investor Portfolio Management system automates and aggregates data from each portfolio firm, allowing organizations to provide investor-grade analysis and insights. For instance, in February 2022, Planetly, a developer of carbon management software solutions, launched an ESG portfolio management system for investors, a new tool designed to help investors integrate ESG management throughout their investment portfolio firms and expedite ESG reporting.
Increasingly Allocating Funds to Private Market Ventures.
Moreover, the rising allocation of companies to private market investments, along with the unexpected economic upheaval and shift to remote work due to the COVID-19 pandemic, has hastened the need for technologies that provide more transparency and enhanced data processing for asset classes. Hence, technology tools that are completely integrated are being launched by major players in the market to help investors make better investment decisions. For instance, in January 2020, the Limited Partner Portfolio Management solution, a highly integrated, multi-manager, multi-asset class tool meant to boost investment decision functionality for sophisticated, international institutional fund investors, was launched by Allvue Systems, a leading alternative investment technology solutions provider.
Electronic Trading Is Becoming More Popular.
The growing trend toward electronic trading, as well as breakthroughs in big data and AI, have aided the market expansion during the forecast period. Users can establish a detailed fixed income portfolio that satisfies clients' particular investing and income objectives and can be implemented electronically in seconds, rather than days or weeks. New technologies enable customers to scale their delivery of personalized fixed income strategies fast and efficiently, demonstrating added value to end clients who have grown to expect their beliefs and choices to be effortlessly incorporated into their investment options. For instance, YieldX, a modern electronic, end-to-end solution for fixed-income investing, debuted in September 2020. The platform solves the many complexities associated with procuring, allocating, and trading fixed income securities with application-based solutions powered by artificial intelligence. With the YieldX Hub and YieldX API, the system was created to help registered investment advisers, broker-dealers, institutions, and fintech startups improve their fixed-income services.
By deployment model, the market is segmented into on-premises and cloud.
The rising adoption of cloud analytics to enhance business operations for small and medium-sized enterprises is expected to drive the overall market growth during the forecast period. The growing demand for cloud-based solutions for the management of large-scale projects is one of the major factors which is contributing to the market's growth. Moreover, the increase in the number of organizations using cloud project management software solutions is also rising. Companies are making significant efforts to efficiently track and control their projects, which has boosted the demand for cloud-based solutions as they offer cost efficiency and flexibility, owing to which the user preference for the adoption of cloud solutions is higher. The deployment of cloud-based solutions is a virtual process that makes service delivery easier and helps the organization access its data across connected devices at any point in time. These advantages are anticipated to drive the market's growth during the forecast period.
COVID-19 SCENARIO
The COVID-19 pandemic positively impacted the global portfolio management software market. With the outbreak of the virus, the implementation of lockdown, the surge in digitalization accompanied by internet penetration, and the rise in employment uncertainties, people turned to the stock market for better gains and a backup source of income. As a result, the number of retail investors increased dramatically during the epidemic. A survey conducted by Charles Schwab in early 2020, observed that 15% of investors studied were new investors (termed generation investors), who started investing in early 2020, in the North American region. Similar trends were also observed across the globe, especially in the European and the Asia Pacific regions. In India, for instance, the share of retail investors in the NSE increased to 45% in 2021, from 33% in 2016, with an increase of 4.5 million new investors.
Recent Developments:
March 2022: Tailored Portfolio Solutions is a new solution from Charles River Development, a State Street Company, that allows both wealth managers and asset managers to provide high-value, fully personalised portfolios at scale. The Axioma Portfolio OptimizerTM (APO) from index and analytics supplier Qontigo is included into the system.
Jan 2021: Vanguard is expanding its ESG fund offerings with a new cooperation with a Scottish firm. Vanguard Group aims to work with renowned Scottish business Baillie Gifford to expand its burgeoning environmental, social, and governance (ESG) investing solutions.
Jan 2021: Due to its capacity to provide highly tailored and detailed reports while boosting efficiency and transparency, Asset Management One Co., Ltd. (AM-One) is the first Japanese client to choose FactSet's Vermilion for domestic usage.
2019: To accelerate our objective to make alternatives less alternative and enable a whole portfolio approach, BlackRock has acquired eFront, the world's top provider of end-to-end alternative investment management software and solutions. The deal sets a new bar for investment and risk management technologies, allowing investors to manage portfolios across public and private asset classes on a single platform.
Market segmentation
BY DEPLOYMENT MODEL
- On-Premise
- Cloud
BY ENTERPRISE SIZE
- Small
- Medium
- Large
BY END-USER INDUSTRY
- Communication and Technology
- Healthcare
- Business Services
- Financial Services
- Manufacturing
- Retail
BY GEOGRAPHY
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Europe
- UK
- Germany
- France
- Spain
- Middle East and Africa
- Saudi Arabia
- UAE
- Israel
- Asia Pacific
- China
- Japan
- South Korea
- Australia
- India
- Indonesia
Table of Contents
Companies Mentioned
- BlackRock, Inc.
- Charles River Systems, Inc.
- MSCI Inc.
- The Vanguard Group, Inc.
- T. Rowe Price Group, Inc.
- FactSet
- HedgeGuard
- Broadridge Financial Solutions, Inc.
- SAGE Group SA
- FA SOLUTIONS
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 155 |
| Published | August 2022 |
| Forecast Period | 2020 - 2027 |
| Estimated Market Value ( USD | $ 13.42 billion |
| Forecasted Market Value ( USD | $ 26.44 billion |
| Compound Annual Growth Rate | 10.1% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
