NEW YORK — Small and midsized alternative investment managers are seriously unhappy with the technology they use every day to manage assets and their businesses.
Well over half — 65% — of 499 respondents to a survey of buy-side managers with median assets under management of $450 million said their primary business systems were not satisfactory, including trade-order management, portfolio management and general ledger systems.
That's the conclusion of a new report on information technology spending by CarbonBased Consulting, New York, a technology consultant to asset management firms.
Consultants at Carbon said that, given the low satisfaction rates with various information technology products and services, they conclude that many asset managers still rely heavily on manual back-office procedures.
While more than half (55%) of alternative asset managers said their implementation of trade-order systems was satisfactory, only 39% were at all happy with their portfolio management and general ledger system.
The survey also said only 32% found their partnership accounting technology to be successful; and just 29% of respondents were happy with their investor relationship management processes.
The dearth of good IT support led 42% of asset managers to say they expect to increase technology spending in 2004, an improvement over 31% in 2003.