The performance analytics market is being driven by regulatory and legislative standards, competition and client demands, and fund managers’ solutions are creaking under the requirements. Which means that fund managers are putting performance analytics technology at the top of their 2004 shopping lists. Or so claims new research from Tower Group.
The consultancy says the combined pressures from regulators and clients will drive investment in performance analytics software and services at a compound annual growth rate (CAGR) of 7.8 per cent between 2004 and 2006 – when total US spending will reach $455 million.
In TowerGroup’s two new pieces of research titled, “Performance Accounting and Analysis: Hot Topics for Investment Management Firms in 2004” and “Buy-Side Performance Measurement and Attribution Tools: Reviewing the Rulers,” Gavin Little-Gill, a senior analyst in the Investment Management practice at TowerGroup, explores the issues facing the performance analytics markets and how the requirements of asset management firms will evolve in the coming year.