Dig into our white papers to find even more insights for driving success
A process view with scorecard on automation, complex instruments, and custom reporting. The paper covers these topics and more:
In daily operations, the processes we use to reconcile trade, position, and cash transactions still leave a number of drawbacks: integrating complex instruments, custom reporting, and faster resolution to name a few. Even with a broad range of tools automating the flow of data, one of the greatest drains on productivity remains non-standardized identifiers and manual handling of mismatched data. Achieving a holistic view is persistently challenged by roles dedicated solely to specific tasks, such that the more powerful recognition of trends and patterns is sacrificed for one-use solutions that cannot be scaled.
Customized outsourced shadow-accounting improves scalability, transparency, and differentiation in the modern hedge fund. and provides:
Fund managers face numerous challenges in today’s increasingly complex investing and operating environment. Operational issues, specifically when properly understood and managed, help efficiency. As managers consider the stakes for sustained growth, outsourced shadow-accounting as an extension of in-house operations provides access to an array of capabilities that are increasingly seen as critical to mid-sized and large hedge fund operations. These capabilities and their benefits are detailed in this paper.
Highlights: the operational and technical challenges and the different approaches to final filing
A multitude of questions, calculations, and decoding considerations
Abstract: Insofar as scope is concerned, responses compiled from multiple sources must be accurately filed in a format defined by ESMA. To do so requires considerable operational resource allocation. This paper describes the range of data questions, calculations, and decoding relevant to operations. Included is a light examination of rationale, calculation, and interpretation, with particular focus on data intensity and complexity. It elucidates this topic with an example of the commitment method for leveraged compu¬tations and concludes with markets and instrument coding.
Years of history and painstaking development – component by component, some proprietary and some purchased – have shaped the operational frameworks that distinguish midsize to large hedge fund managers from each other. These substantial investments in back- and middle-office technologies – including general ledger, data warehousing, and shadow books and records – result in a level of business intelligence unique to each manager.
As managers complete more regulatory filings and regulators build processes and structures to facilitate sharing of data amongst agencies they can expect uses of the data will multiply. For now, the SEC has provided Form PF data to the Treasury Department’s Office of Financial Research (OFR), which supports the Financial Stability Oversight Council (FSOC) in monitoring risk. FSOC also uses the data in investigations, examinations and investor protection. Prior to releasing the Form PF data to FSOC, the Form PF Steering committee and senior officials from Treasury met to agree on security and confidentiality measures.
The demands are endless, but the capabilities are limited. You will know it is time to look towards managed fund administration when you start to experience these 8 signs: audit spreadsheet risk, retaining talent, increase in assets, fee calculations across multiple entities, SPVs, Blockers.