Software investment solutions spend to fall away
Sales of investor software accounting solutions for hedge funds and fund of funds is set to fall away over the next few years, according to researcher Celent.
It found sales will fall from a peak US$15 million in 2008 to US$14.1 million in 2010, before picking up again in 2012 growing to US$14.8 million.
It said the fall will be driven by uncertainty surrounding capital markets and the hedge fund and fund of fund industry, as well as widespread retrenchment in IT spending in 2009.
"Spending on new technology, including investor accounting systems, will take a back seat to realising efficiency wins from existing applications infrastructure while lowering maintenance costs or at least keeping the status quo," according to a media release.
"Unless faced with a collapsing platform, large-scale system acquisitions or replacements are expected to be postponed."
Beginning in 2011, Celent said, new investment spending is expected to accelerate as hedge funds embark on fresh IT projects related to business growth, and by 2012 budgets will have returned to a more solid growth pattern.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
