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Need for Returns is Driving Investors' Demand for New Products, Global Investments and Broader Asset Classes, According to Capco

Contact
Diana Butler Buxton, 212-284-8728, diana.buxton@capco.com
Capco Introduces North American Wealth & Investment Management Group to Meet Client Demand for Growth, While Enhancing Risk Management and Operating Efficiency

Capco, a global provider of consulting and managed services to the financial services industry, today announced its unveiling of a dedicated North American Wealth & Investment Management Group. This significant expansion of the firm’s capability responds to strong demand from wealth managers, investment institutions, and investor services firms that are seeking to increase profitability and market share despite ongoing volatility in the financial markets and investor community. Capco partner Edward Hawthorne is leading the Group.

The Group provides management and technology consulting services across three primary lines of client business:

  • Wealth Management, which serves private banking, financial advisory and retirement services, and retail brokerage firms;
  • Investment Management, including services to institutional money managers, pension investors, endowments and foundations, hedge funds, and complex boutique investment managers; and
  • Investor Services, which serves fund administrators, fund accountants, transfer agents and record keepers, and custodian banks.

The Group also provides clients with consulting services and solutions in: Change Management; Open Architecture Product Strategy; Operating Model Design; Clearing Platform Technology Evaluation; ETF Processing; and Merger Integration.

Following an average 14% CAGR from 2002-2007, total assets managed by North America’s leading institutions in 2008 decreased 23% from 2007, according to the Capco North American Wealth & Investment Group. This sharp decline coupled with client demands for expanded product and service capabilities is driving leaders within the sector to update their operating models and rethink how information is used to manage investments, control risks, and increase transparency.

“Given the sustained challenges the market is facing, we expect that pressure on margins will remain and this presents significant challenges to the profit outlook for investment managers,” said Capco Partner Edward Hawthorne. “Reduced margins have been driven in part by declines in asset values from their 2007 peak, redemptions, and redistribution of mandates. In response, businesses are turning to Capco for advice on strategies to achieve their profitability goals by optimizing their product and service capabilities and increasing the efficiency and scalability of their operating platforms. Capco is well suited to address these demands.”

Looking to 2010, the North American Wealth & Investment Management Group shared several continuing trends affecting the investment management community:

  • Budgets for many firms in developed markets will reflect diminishing profits, and spending priorities will shift, with IT budgets focusing heavily on information and risk management;
  • The market for buy-side risk analytics will grow from $1.3 billion in 2008 to $1.8 billion by 2013;
  • Portfolio managers, advisors, risk managers and investors will continue to demand faster access to information to understand and manage exposures; and
  • Investment institutions will continue to adjust their operating models to profit from an expanding array of investment opportunities across markets and asset classes.

Capco has worked on major change projects with the world’s leading wealth and investment management institutions. And, through its award-winning Capco Institute Journal, published quarterly, Capco provides the wealth and investment management community with timely, insightful research. The introduction of the North American Wealth & Investment Management Group leverages Capco’s deep expertise, thought leadership and is part of Capco’s recently announced North America growth strategy to serve the needs of a broader range of clients. With offices across North America, the Wealth & Investment Management Group leverages the skills of Capco’s integrated, full-service team. Capco attracts the industry’s top professionals who have an average of 16 years of first-hand industry and consulting experience in financial services.

Capco is widely recognized by its clients for service excellence and dedicated focus on the financial services arena.

About Capco
Capco is a leading global provider of integrated consulting, technology, and transformation services dedicated solely to the financial services industry. Our professionals combine innovative thinking with our unrivalled first-hand industry knowledge to offer our clients consulting expertise, complex technology and package integration, and managed services to move their organizations forward. Through our collaborative and efficient approach, we help our clients successfully increase revenue, manage risk and regulatory change, reduce costs and enhance control. To learn more, contact us at 212-284-8600 or visit our Web site at www.capco.com.

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