Intellect Positioned amongst major players providing Next Generation Portfolio and Investment Risk Capabilities in Celent Report
As active managers search for returns and value added alpha within a dynamic market besieged by low (but rising) interest rates, buy side firms are also facing pressures from increased regulatory compliance and transparency requirements, structural market changes, influx of digital technologies as well as continual shifts in investor buying behaviour, product preferences and performance/cost perceptions. Markets are now turning and investment cycles changing. Investment managers and asset owners, especially the ones with more sophisticated mandates, are needing to balance and triangulate between various defensive, return seeking objectives. Stakeholders, sponsors and regulators are demanding that investment firms more proactively manage, monitor, forecast and control allocation and exposures on these investments on a total portfolio, business-as-usual basis.
Firms will need to respond more strategically from a business model and operations perspective, driven by a confluence of secular themes shaping up the strategic requirements for next generation portfolio and risk management in the coming years. When designing, choosing and implementing next generation capabilities for portfolio and investment risk technology, asset managers and asset owners are now directing their preferences towards multi-asset solutions, more functional coverage or outsourcing non core activities across the investment lifecycle in order to benefit from economies of scale, lower operating costs and increased simplicity and control. In order to fulfil more sophisticated investment management ambitions, asset owners and asset managers are looking to raise the bar to develop enhanced and differentiated investment capabilities – to better exploit data and information more effectively for strategic advantage and alpha generation.
Celent – a research, advisory and consulting firm evaluated enterprise market risk management solutions offered worldwide, examining their strengths and weaknesses across various dimensions related to firm wide risk aggregation, performance and risk attribution, total portfolio monitoring and control, stress testing as well as liquidity analysis and risk centric regulatory reporting. Based on Celent’s surveys and anecdotal evidence, the solutions which truly differentiate are the ones going beyond the hype and are demonstrating real life investment portfolio and risk management with next gen capabilities which will increasingly differentiate winners from losers.
In its report named "Next Generation Portfolio and Risk Capabilities (Part 4)" , Celent positioned Intellect Design amongst leading players worldwide providing Next-generation Portfolio and Risk capabilities. The report examines how evolving business trends are altering portfolio investment risk management practices and also gives an overview of trends and market dynamics that characterize enterprise market risk technologies.
Intellect has a strong track record of staying at the cutting edge of investment trends and what clients require, with a cohesive architectural vision and innovative approaches to existing problems by exploiting next-generation technologies to enhance its portfolio and investment risk offerings.
Some of the Strengths and key Differentiators of Intellect Design are:
- Integrated, front-to-back solution enables financial firms to go to market faster. - Solution covers portfolio management, trade/position management, stress testing/scenario analysis, collateral / margining firm wide risk aggregation, limits management, and post-trade and back office operations, such as custody (safekeeping, clearing & settlement, fees & billing, corporate actions) and fund accounting.
- Relatively established presence in bank-oriented treasury and markets functions that manage balance sheet risk, solvency, and liquidity (including investment risks).
- Strong competencies in digital technologies, transformation, and innovation (AI, cloud, big data, blockchain, smart automation), e.g., AI-based sentiment and news analysis which is aligned with portfolio and risk management functionality.
- Strong functional layer and components to deliver to dynamic dashboards and visualization. Libraries of “ready-to-deploy” risk visualizations/dashboards. Platform-agnostic to support comprehensive “risk data universe” and pre-built data connectors.
- Established services capabilities (IT software development, systems integration, off-shoring; in addition to the provision of software).
- Good workflow management functionality for trading, risk/limits control, and compliance.
- Strong customer service and delivery reputation, with a mature implementation and delivery business model.
- Track record, presence, and proposition in both established and emerging markets (e.g., Middle East, emerging/southeast Asia).
Looking at the snapshot where firms and solution vendors are headed, Celent anticipates that the importance of investment and risk management will grow increasingly in the coming years. We are at a juncture where we are seeing ‘age-old’ investment and risk management supply chains enter the digital world.
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