Part
01
of one
Part
01
Please provide an industry breakdown for portfolio managemet software in the RIA market. I am interested in the market penetration and feature breakdown.
Hello, and thank you for your question about the market penetration and features of the following companies that provide portfolio management software: Orion Advisor Services, Advent Black Diamond, Envestnet Tamarac, Addepar, and Albridge Pershing. The most useful sources I found to answer your question are the RIABiz report and press releases for each company. The short version is that these five companies accounted for 24.2% of the available market from 2015 to 2016. You will find a deep dive of my findings below.
OVERVIEW
The global portfolio management software market in 2015 was $2.52 billion and with a CAGR of 12.34%, it is expected to reach $4.63 billion by 2020. A growing trend in this industry is the need for mobile friendly platforms. This issue is driving innovation in the market to meet the needs of increasing optimization and project complexity.
METHODOLOGY
Since all detailed reports concerning the total theoretical market for portfolio management software are behind large paywalls, I have provided the projected market value for 2015 as a reference.
For each of the five companies researched, I wasn't able to track down revenues since that information was also behind paywalls. However, I researched recent press releases for each company to determine the number of firms they provided services to and the amount of assets on their platforms between 2015 and 2016.
I was also able to find the 2015 Evolution Revolution study from the Investment Advisor Association which reported 11,473 SEC-registered advisors. It also reported that these advisors were managing $66 trillion in assets. Therefore, using these numbers, I estimated the market penetration for each company in terms of firms serviced and assets managed. Overall, these five companies provided services to 24.2% of the available SEC-registered advisors from 2015 to 2016.
PORTFOLIO MANAGEMENT SOFTWARE COMPANIES
1. Orion Advisor Services
Features:
-Tech Labs which are hosted at Orion headquarters and bring advisors face-to-face with their Support Team to receive specialized training
-Daily reconciliation and key reports
-Trading and rebalancing tools
- Engage offers customizable reports so RIA's can create unique video statements
-Client Portal allows advisors to set create a customized space for clients to access their portfolios.
-All major CRM providers integrate with Orion's software which is third party friendly
2. Advent Black Diamond
Features:
-Streamlined workflows so everyone in the office stays in the loop
-Software that is easy to learn and user friendly
-Net worth reporting
-Ability to compile all plans and reports into one professional presentation
-Track alternative investments
-Ability to rebalance accounts
-Data mining features for quick access to answers
3. Envestnet Tamarac
Features:
-Advisor CRM provides an online client portal and premium CRM platform
-Handles all reconcilliations and cost-basis calculations
4. Addepar
Features:
-On-demand support and troubleshooting
-Enhanced privacy and security
-Create custom reports
5. Albridge an affiliate of Pershing
Features:
-Consolidated reporting offering wealth, performance, and replicated data management
-Compliance and operations assistance for account and transaction monitoring along with providing a streamlined workflow
-Data management provides a 360 degree view of client's portfolio, quality benchmarking, and data warehousing -Distribution analytics handles third party assessment and monitoring, and allows for easy monitoring of firm's performance
CONCLUSION
To wrap it up, Orion Advisor Services, Advent Black Diamond, Envestnet Tamarac, Addepar, and Albridge Pershing managed 8.05% of assets and provided services to 24.2% of all registered investment advisors between the years of 2015 and 2016. Thank you for using Wonder! Please let us know if we can help with anything else!