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Survey Shows Asset Managers Expect Growth This Year, But Many Still Struggle With Operational Readiness

"The findings of this survey echo what we've been hearing in the industry about high expectations for growth in the year ahead," said David Kubersky, Managing Director of SimCorp North America. "The survey revealed that many asset managers are concerned about how the growth of complex new investment strategies and expansion into new asset classes and markets is putting stress on existing front-, middle-, and back-office systems. More than ever, we're seeing a growing need in the industry for enterprise-wide solutions that enable asset managers to quickly adjust to changing strategies and scale up as revenues and AUM continue to grow."

Results of the survey showed that asset managers have an optimistic view on the growth of their firms over the next 12 months, with 90% of asset managers expecting an increase in annual revenue this year. In addition to positive revenue growth projections, 100% of all respondents expected AUM to grow this year, with 45% expecting growth of over 10%.

The survey also found that:

• While growth is a priority, the majority of asset managers are still in a position where they are relying on manual processes. Over 51% of asset managers indicated a moderate (31%) or high (20%) degree of manual processes in daily operations.
• Respondents indicated that with the existing investment management systems they have in place, the majority of respondents would take over three months to offer a new product to the market, with 26% of asset managers saying it would take over six months.
• Nearly all asset managers felt that increases in regulatory and legislative requirements will affect their organization's ability to innovate and conduct business. Over 80% of respondents felt that regulatory requirements would have a moderate to significant impact on their business.
• Even against this backdrop, over 50% of asset managers still have systems that only allow for a moderate to no degree of automation for new reporting requirements such as increased transparency in complex fund structures, regulatory reporting and client reporting.
• Many asset managers indicated a lack of growth-readiness - 38% of asset managers felt that their current IT infrastructure was either moderately or had little capability of supporting the future growth ambitions of their organization.

The benchmark survey is based on 49 interviews conducted from April to July 2010 with respondents from around the world.

Asset Management Growth Readiness Assessment Tool

The survey, which included responses from asset managers around the world, will be used as a benchmark for SimCorp's Asset Management Growth Readiness Assessment tool, which allows asset managers to compare their growth readiness with that of their global peers.

Located at http://benchmark.simcorp.com, the Growth Readiness Assessment tool evaluates how firms are approaching a range of issues related to growth, including:

• Likelihood of introducing new services and offerings
• Plan to enter new geographical markets over the next 12-24 months
• Expectations regarding the effects of regulatory and legislative requirements
• Capability of existing systems to support new funds or products
• Level of automation in reporting capabilities

After completing the 5-minute self-assessment, participants will receive a personalized report with a detailed analysis on their firm's growth readiness at both an operational and organizational level. In addition, SimCorp will provide respondents with ideas for value creation.

SimCorp

SimCorp is a leading provider of highly specialized software and expertise for the investment industry. Established in 1971, with more than 1,100 employees, SimCorp is listed on the NASDAQ OMX Copenhagen A/S. SimCorp enables global investment management organizations to mitigate risk, reduce cost and enable growth through development and implementation of its integrated and market-leading financial software solution SimCorp Dimension. SimCorp is headquartered in Copenhagen with subsidiaries and branches in Amsterdam, Brussels, Frankfurt, Helsinki, Hong Kong, Kiev, London, Los Angeles, Luxemburg, Munich, New York, Oslo, Paris, Singapore, Stockholm, Sydney, Toronto, Vienna, and Zurich.

For more information, visit www.simcorp.com

Cognito US
Binna Kim/Renee Sieli, 646-395-6300
simcorp@cognitomedia.com