Prompted by a shift toward defined contribution plans and regulatory changes, European fund managers and their asset servicing providers will increase their spending on portfolio management and accounting systems to $787 million by 2012, from about $646 million in 2009, according to a report released by Aite Group.

“The growth in spending for portfolio systems reflects a tighter regulatory environment making greater demands on firms for automation, reporting and risk analysis, greater availability of options such as software-as-a-service which lower implementation costs and replacement of antiquated technology that has not kept up in areas such as derivatives, client reporting and work flow management,” wrote Denise Valentine, a senior analyst for the Boston-based research firm.

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