Company Report: Sungard Trust Accounting

Trust Accounting

Trust accounting is a specialized form of accounting that focuses on the management and administration of assets held in trust for the benefit of another party, known as the beneficiary. Trusts can be established for various purposes, such as estate planning, charitable giving, or asset protection.

The trustee, who is responsible for managing the trust, must maintain accurate and detailed records of all transactions, income, expenses, and distributions related to the trust assets. Trust accounting involves tracking the flow of funds, ensuring compliance with the terms of the trust agreement, and providing regular reporting to beneficiaries and relevant authorities.

The trust accounting process involves several key aspects.

First, the trustee must maintain a comprehensive inventory of all trust assets, including cash, investments, real estate, and other tangible or intangible property.

Second, the trustee must record all income generated by the trust assets, such as interest, dividends, or rental income. Third, the trustee must track all expenses incurred in the administration of the trust, such as legal fees, accounting costs, or property maintenance.

Finally, the trustee must ensure that any distributions made to beneficiaries are accurate, timely, and in accordance with the terms of the trust agreement.

There are several vendors in the market that offer trust accounting software and services to help trustees manage their responsibilities more efficiently. These vendors provide solutions that automate many of the manual processes involved in trust accounting, such as asset tracking, income and expense categorization, and beneficiary distributions.

Some of the key players in the trust accounting vendor market include:

1. Fiduciary Trust Company International (New York, NY)
2. Broadridge Financial Solutions (Lake Success, NY)
3. Accutech Systems Corporation (Muncie, IN)
4. Infovisa (Plano, TX)
5. FIS Global (Jacksonville, FL)
6. Innovest Systems (New York, NY)
7. SEI Investments (Oaks, PA)
8. SunGard Data Systems (Wayne, PA, Charlotte, N.C.)
9. Fiserv (Brookfield, WI)
10. Envestnet | Yodlee (Redwood City, CA)

The trust accounting vendor landscape is diverse, with a mix of large, established players and smaller, specialized providers. Some vendors offer comprehensive trust accounting platforms that integrate with other financial management systems, while others focus on specific aspects of trust administration, such as compliance or reporting. As the complexity of trust accounting continues to grow, driven by factors such as regulatory changes and the increasing globalization of assets, the demand for sophisticated and reliable trust accounting solutions is expected to remain strong.


SunGard Addvantage Trust Accounting Product Report

SunGard's trust accounting offerings fall under their Financial Systems (FS) segment, which provides software solutions for a wide range of financial services firms. While specific details on their trust accounting products are limited , an analysis of their patent portfolio provides some insights into the key functional areas and development focus.

Functional Clusters and Patent Analysis

1. Trust Accounting and Financial Risk Management Several patents, such as '532 (crisis response plans), '444 and '486 (coordinating sessions on systems), and '355 (financial risk management system), relate directly to trust accounting, risk management, and financial data processing. This cluster appears to be a core focus for SunGard's trust accounting products.

2. Workflow Management and Automation Patents '321 (recovery automation) and '323 (network topology-aware recovery) showcase SunGard's efforts in developing automated workflows and recovery processes. Streamlined workflows are critical for efficient trust account management.

3. Artificial Intelligence and Machine Learning While not a dominant cluster, patents '885 (assessing debtor behavior) and '560 (organizing data using pattern hierarchies) suggest SunGard is exploring AI and machine learning techniques for financial applications. These technologies could potentially enhance risk assessment and decision-making in trust accounting.

4. Cloud Services and Virtual Infrastructure Management Patents like '637 (cloud service dashboard), '465 (virtual data center scalability), and '253 (private cloud recovery) highlight a focus on cloud-based solutions. Moving trust accounting to the cloud could offer benefits like increased accessibility and business continuity.

5. Energy Trading and Transaction Management A significant number of patents, such as '448 (system architecture for energy trading) and '502 (optimizing scheduling of energy assets), relate to energy trading. While not directly tied to trust accounting, expertise in handling complex, high-volume transactions could translate to processing efficiencies in the trust space.

Ranking and Implications: Based on the patent frequency, SunGard's development efforts appear to prioritize:
1. Energy Trading and Transaction Management
2. Trust Accounting and Financial Risk Management
3. Cloud Services and Virtual Infrastructure
4. Workflow Management and Automation
5. AI and Machine Learning

The heavy focus on energy trading suggests SunGard has built robust systems for handling intricate, large-scale transactions. This expertise could complement their trust accounting products by enabling them to process trust-related transactions more efficiently and handle greater volumes. The emphasis on cloud services and virtual infrastructure management also bodes well for delivering flexible, resilient, and scalable trust accounting solutions.

However, the comparatively lower number of patents directly related to core trust accounting and risk management indicates that while it is an important offering, it may not be receiving the same level of research and development investment as some other areas. The nascent exploration of AI and automation for financial applications shows promise but seems to be in earlier stages.

Bottom Line

SunGard's trust accounting products are part of a broader suite of financial software solutions. While the company possesses relevant capabilities in transaction processing, risk management, and cloud deployment, the patent analysis suggests trust accounting may not be the topmost development priority compared to areas like energy trading. Nonetheless, SunGard's expertise in adjacent domains could enhance the functionality and performance of their trust accounting offerings. More specific information on product features, market position, and growth strategies would help paint a clearer picture of the strength and trajectory of SunGard's trust accounting business.