SimCorp poll points to back-office failure to support portfolio growth strategies

SimCorp, a leading provider of investment management solutions and services for the global financial services industry, today released the results of a poll examining the impact of portfolio accounting systems on an investment manager’s growth strategies and vulnerability to operational risks. Respondents included 75 executives from over 50 buy-side firms across the United States and Canada.

The poll conducted last month revealed that close to half of the respondents are not confident that their current accounting systems can support the launch of new products in a timely fashion. Additionally, almost 40% of firms surveyed state they cannot support all major asset classes in one accounting system, leaving their organisations open to errors in: data reconciliation, portfolio valuations, performance and exposure calculations. Interestingly, 63% of those polled claim they have updated their accounting systems less than five years ago.

“These poll findings have far-reaching implications,” comments David Kubersky, Managing Director of SimCorp North America. “Technology is failing the buy-side. Deficiencies such as lack of multi-asset coverage in accounting platforms will erode competitive advantage for quick time-to-market of new products. Alternatively, if the back-office opts for spreadsheet workarounds, they will expose the firm to operational risks associated with reconciliation and settlement mistakes.”

Respondents were also asked to describe the tasks and operations that are critical to their business but are not supported by their current accounting platforms. Answers included data visualization via dashboards, limitations in setting up new securities, derivatives processing, asset class management, trade confirmations, reporting and intraday account setup.”

To learn more about SimCorp’s investment management solution, SimCorp Dimension, please register for the upcoming webinar: Solvency at Risk: Outdated Technology Failing the Buy-Side.

Enquiries regarding this announcement should be addressed to:
Susan Peter, SimCorp North America (+1 917 546 4654)