Risk Analysis and Market Scope: Portfolio Management System

Risk Analysis and Market Scope: Portfolio Management System

By Knowledge Sourcing Intelligence Thought Articles

The global portfolio management system market size was valued at US$13.424 billion in 2020 and is anticipated to increase at a Compound Annual Growth Rate of 10.17% over the predictive period to reach US$26.440 billion by 2027. Portfolio management is the process of assessing prospective projects by taking into account each project's expected benefits and risks, as well as its alignment with the organization's strategy. Active portfolio management involves systematically purchasing and selling stocks and other assets, to meet the financial and long-term goals of an enterprise. Portfolio management software, which assists firms in managing complex and frequently concurrent projects, can effectively deal with such complex situations. The rise in market competitiveness, demand for cost management, and the rise in demand to maximize market growth have fueled the demand for the portfolio management system market. Greater emphases on data-based planning processes have also created a demand for the portfolio management system market.

Uses of Portfolio Management

Project Evaluation: - Portfolio management can help corporations in determining whether Projects, Programs, and other work items should be kept going, maintained, or terminated. Sometimes some projects need postponement because of a lack of money or resources to meet the demand.

Resource Capacity: - Portfolio Management can help in the estimation of Financial and Resource Capacity based on major responsibilities so that the spending and investments can be done within the allocated funds. Moreover, the difference between target spending and planned spending in the Portfolio can also be determined by portfolio management.

Risk Analysis: - By examining the risk vs. return profile of the whole project portfolio, portfolio management provides a more holistic perspective. This guarantees that firms have backup plans in place in the event of a disaster. This creates the foundation for a more advanced risk management strategy.

Determine Scope: Portfolio Management can help in the integration of the most recent market circumstances with income forecasts. The money can be allocated and tracked across their distribution among Projects. This can help in the determination of market scope.

Portfolio Analysis: Portfolio management compiles a list of the investments made by the user. Portfolio Analysis offers structured project management and control of the investments made, so the organization can ensure that the investments made are performing well, and can take action for bad investments and prevent loss or waste of resources.

Development in Portfolio Management systems

PortfolioStudioTM, a new cloud-based credit portfolio management software from Moody's Analytics, was released by the company in a news release dated 1st November 2021. Users can use this system to scan for risks and opportunities, analyze alternative actions, and determine how to respond using the PortfolioStudio's comprehensive portfolio view of the present and upcoming hazards in one platform.

According to a press release by TORA Trading Services Ltd on 28th October 2020, the company launched a new generation portfolio management system, which provides comprehensive trading solutions for hedge funds and asset managers. A new general ledger, comprehensive SWAP contract modeling, quick time series functions, outstanding charting features, and dashboards will all be part of the platform. The PMS may build and track particular cash flow streams during any stage of the contract as part of the expanded SWAP functionality. P&L indicators and daily accrued interest are also included in the system.

As reported by Alluve in a press release in January 2021, the company launched its new Limited Partner portfolio management solution. The LP solution makes data management easier with its comprehensive information and document processing capability, which analyses vital data from documents, which is a time-consuming process, given the vast volume of data received by LPs every day. Investors will be able to manage specific qualities, documents, and cash flows related to their investments across numerous private asset classes and investment types, as well as engage with and analyze their assets to assess exposure, performance, risk, and more, using the data system.

As announced by Profile Software in a press release dated 03rd September 2021, Centevo, the leading asset management software provider in the Nordics and a Profile Group Company, has presented enhancements to its flagship platform, Cairo, the flexible portfolio management solution and the front-end solution for clients. Centevo now has a FIX connection that allows it to connect to Bloomberg via Cairo's portfolio system. Stock and ETF orders may be placed directly in the system, reducing the need for manual processes and attaining automation. Centevo has also improved the End-Client Solution to include new features. The service provides end-users with a clear picture of their assets, a secure route for encrypted communication, and a simple fund trading platform.

North American Region to Lead the Market

The North American market has been reported to have the largest market share in the portfolio management system market. The demand for portfolio management solutions and services in North America is projected to be fueled by technological improvements in the cloud and mobile technologies. The existence of large IT industries in this region is a major driver for the market. Furthermore, the majority of leading corporations have their headquarters in North America, giving the area better market opportunities. Moreover, the increasing prevalence of mobile devices and growing advancements in cloud-based services provide easy access to such services. Hence, the North American region is anticipated to experience significant growth in the portfolio management system market.

Covid-19 Insight

The COVID-19 pandemic resulted in a global economic decline. Lockdown limitations were imposed in most major nations, resulting in huge losses for most major businesses. However, the COVID-19 pandemic had a positive impact on the portfolio management system market. The rise in internet penetration and work-from-home measures due to lockdown protocols led to a rise in demand for the portfolio management system market. The pandemic also reported a surge in investing activities from a lot of companies, as well as, individuals, which led to a rise in demand for portfolio management activities. Moreover, the development of management systems in smartphones for individual use has also created opportunities for the market. Further, as most nations have started to lift their lockdown protocols, the market is anticipated to expand even further.