Data management is an important determinant of a hedge fund operation’s success. This makes it crucial for hedge funds to invest in a state-of-the-art platform for storing and managing data from various asset stakeholders – from the fund manager, to the client investors and industry partners.
Here are the benefits of a smart and efficient data management practice in hedge fund management, made possible by a portfolio management system with superior features:
Improved accuracy of output. Where advanced computation capabilities are involved, there is going to be significant improvement in terms of the accuracy of data being produced. There will be decrease in human error, as functions may now be automated.
Faster performance of tasks. Through the use of technology, tasks can be performed much faster, saving the company hours and hours and precious manpower that could be devoted instead to more strategic goals. Data can be retrieved and organized in less than a minute, if not with the click of a button, based on specified parameters. And when the employees can do their tasks with speed and ease, they will be much more driven and register higher productivity.
Savings on the use of physical space. When data is kept on physical records, the space to be consumed for a filing system could be significant. Today, innovative data management tools save an enormous amount of information on the cloud – ready to be accessed and updated by authorized users anytime, anywhere. No need to maintain transaction records and the equipment used to store them.
Improved ability to share data. With technology, users can easily share information via their common platform. Cloud-based solutions can be used to upload and download data, and to facilitate collaborations, too.
Promotion of data privacy and security. Speaking of authorized users, the first-rate data management systems can assign access codes to categories of information, so that only the select users within the system can view them. Privacy and security of company and client investor data are paramount and are given much emphasis by industry regulators of hedge funds.
More convenient compliance management. Adhering to the various regulations covering the hedge fund management business can be quite a challenge. With a good data management tool, tasks related to compliance can be made easy. Reporting can be facilitated by features that arrange raw information into required formats, and fund managers may receive alerts for submission deadlines.
Topnotch portfolio management software solutions with these features are available through asset servicing firms.
Showing posts with label Software. Show all posts
Showing posts with label Software. Show all posts
Friday, March 17, 2017
Sunday, January 22, 2017
Best practices in data management for hedge funds
Our age has been dubbed the age of information. Vast amounts of knowledge are now at the tips of our fingers, and platforms already exist for the transmission of data at the click of a button. For hedge funds, trends involving the improved access to data have become crucial in promoting evidence-based investment decisions – decisions influenced by an analysis of fund growth patterns, interest rates, and risk measures, among other factors.
Below is a list of best practices to adopt, to make the most out of the present crop of data management technologies, and the next ones to come:
Adherence to security protocols. Data is now easily accessed, and shared, across platforms, across continents, in the real-time. Hedge funds need security protocols in place to prevent any breach to the network, which will make a company’s digital infrastructure and business strategy vulnerable to attacks. Protocols should cover such practices as the use of encryption when sending files to other networks, setting up of protection for data storage units and mobile devices, and the installation of advanced antivirus solutions, firewalls, and security patches to the network computers. Staff should be properly briefed – and trained – regarding protection of company information, and strict measures should be in place for any such process of allowed data release.
Automation of select processes. Humans can be prone to errors, especially in tasks marked by repetition and calculations. For these cases, automation features of data management solutions should be duly explored and optimized, because this will ensure accurate and precise outputs. At the same time, this practice reserves the precious time and high-level skills of the staff for core and complicated functions, such as strategizing, building relationships with client-investors, or conducting thorough risk analysis involving the assets under their management.
Use of cloud-based solutions. Data management lends much more benefits when access to information is easy and convenient. A cloud-based data management platform allows this. When data is on the Cloud, multiple parties can simultaneuously view files from wherever they are, make changes that will be reflected in the real-time, and even engage in collaborations. The more advanced solutions are capable of instant data aggregation and validation – functions that only raise the bar in data warehousing.
Among today’s breed of hedge funds, leading asset servicing firms provide the much-needed staff and technology support for adopting these best practices, ushering in a new era in data management among fund managers.
Below is a list of best practices to adopt, to make the most out of the present crop of data management technologies, and the next ones to come:
Adherence to security protocols. Data is now easily accessed, and shared, across platforms, across continents, in the real-time. Hedge funds need security protocols in place to prevent any breach to the network, which will make a company’s digital infrastructure and business strategy vulnerable to attacks. Protocols should cover such practices as the use of encryption when sending files to other networks, setting up of protection for data storage units and mobile devices, and the installation of advanced antivirus solutions, firewalls, and security patches to the network computers. Staff should be properly briefed – and trained – regarding protection of company information, and strict measures should be in place for any such process of allowed data release.
Automation of select processes. Humans can be prone to errors, especially in tasks marked by repetition and calculations. For these cases, automation features of data management solutions should be duly explored and optimized, because this will ensure accurate and precise outputs. At the same time, this practice reserves the precious time and high-level skills of the staff for core and complicated functions, such as strategizing, building relationships with client-investors, or conducting thorough risk analysis involving the assets under their management.
Use of cloud-based solutions. Data management lends much more benefits when access to information is easy and convenient. A cloud-based data management platform allows this. When data is on the Cloud, multiple parties can simultaneuously view files from wherever they are, make changes that will be reflected in the real-time, and even engage in collaborations. The more advanced solutions are capable of instant data aggregation and validation – functions that only raise the bar in data warehousing.
Among today’s breed of hedge funds, leading asset servicing firms provide the much-needed staff and technology support for adopting these best practices, ushering in a new era in data management among fund managers.
Wednesday, September 28, 2016
Fund administration and the role of third-party asset servicing firms
Fund administration is undoubtedly a very important task nowadays. And it pays for fund managers to have third-party administrators help manage their business. But what do these third party companies do anyway?
Calculating the values of net assets
Fund administrators are usually independent companies that offer a wide range of solutions and services that are mainly designed to assist hedge fund managers in verifying the values of assets, reconciling data, ensuring fair pricing for traded securities, preparing investor statements and other reports, and other tasks.
It is the first task that is arguably the most important, as many people who work for asset servicing firms would agree; accurately calculating net asset values and ensuring all transactions on record had actually happened is vital to the integrity of every hedge fund or similar vehicle.
Data reconciliation
The second of the aforementioned tasks, which is the reconciliation of data, is another key service offered by third-party asset servicing firms, and one that is closely related to asset value verification. Usually, toward the end of the month, broker statements and investment manager statements are checked and verified to make sure they are not inconsistent with one another. Administrators also have to consider different variables that could affect net asset values, such as the inflow and outflow of investor assets.
Fair pricing
Fund administrators also have to make sure that each traded security has been priced fairly. This could require a lot of mathematical grunt work, but thanks to the experienced staff that are now de rigueur for third-party asset servicing companies, this is easier to complete than what one may think. In fact, administrators typically use the averages of three quotations from brokers, and only use sophisticated math when a particular holding is a rather complex one.
The cloud plays a valuable role in administration
In today’s fund administration industry, more and more companies are leveraging higher-end technologies to ensure they take good care of their funds their clients manage, and deliver accurate information on time, all while being compliant with all laws, regulations, and statutes.
Cloud-based technology is a requisite for these firms, who offer a wide variety of middle- and back-office solutions, and handle the tasks mentioned above, among many others. Considering the repercussions of the Bernard Madoff scandal and the higher premium on transparency demanded by investors, hedge fund managers will certainly be better for dealing with third-party companies for their asset servicing needs.
Calculating the values of net assets
Fund administrators are usually independent companies that offer a wide range of solutions and services that are mainly designed to assist hedge fund managers in verifying the values of assets, reconciling data, ensuring fair pricing for traded securities, preparing investor statements and other reports, and other tasks.
It is the first task that is arguably the most important, as many people who work for asset servicing firms would agree; accurately calculating net asset values and ensuring all transactions on record had actually happened is vital to the integrity of every hedge fund or similar vehicle.
Data reconciliation
The second of the aforementioned tasks, which is the reconciliation of data, is another key service offered by third-party asset servicing firms, and one that is closely related to asset value verification. Usually, toward the end of the month, broker statements and investment manager statements are checked and verified to make sure they are not inconsistent with one another. Administrators also have to consider different variables that could affect net asset values, such as the inflow and outflow of investor assets.
Fair pricing
Fund administrators also have to make sure that each traded security has been priced fairly. This could require a lot of mathematical grunt work, but thanks to the experienced staff that are now de rigueur for third-party asset servicing companies, this is easier to complete than what one may think. In fact, administrators typically use the averages of three quotations from brokers, and only use sophisticated math when a particular holding is a rather complex one.
The cloud plays a valuable role in administration
In today’s fund administration industry, more and more companies are leveraging higher-end technologies to ensure they take good care of their funds their clients manage, and deliver accurate information on time, all while being compliant with all laws, regulations, and statutes.
Cloud-based technology is a requisite for these firms, who offer a wide variety of middle- and back-office solutions, and handle the tasks mentioned above, among many others. Considering the repercussions of the Bernard Madoff scandal and the higher premium on transparency demanded by investors, hedge fund managers will certainly be better for dealing with third-party companies for their asset servicing needs.
Friday, June 17, 2016
The value of adopting a state-of-the-art portfolio management system
Portfolio management is a complex business. Aside from requiring thorough and regular monitoring of asset performance, managers need to deal with growing demands for transparency and oversight in and outside of the investments and securities industry. Thankfully, these challenges can now be addressed with the adoption of a good portfolio management system.
Below is a discussion of some of the benefits of investing in the best version of this tool.
Keeping up to date with industry developments. With the help of a portfolio management system, client-investors can be provided with reporting tools that are always available online. This allows asset managers to look at upcoming trends, assess their impact on the fund’s performance, and accordingly prepare measures that address emerging risks.
It offers a comprehensive view of all factors needed in making investment decisions. Portfolio management is about dealing with a lot of metrics, and using the insight derived from them to guide future actions. The best of breed portfolio management systems offer a consolidated view of past transactions, the assets under management, and cash flow, allowing for quick and sound decision-making.
Complying with all pertinent regulations becomes much easier. The past financial crises and major investment scandals truly rocked the industry, and spurred a number of government regulations designed to protect the interest especially of the client-investors. But dealing with all of these tight regulations is a huge and time-consuming chore for most firms. When they fail to comply, they are subject to penalties and legal action, on top of seeing their reputation crumble. By adopting a portfolio management technology, most of the procedures related to compliance can be automated, such that the entire process need not take up so much of the company’s resources.
It enables strategizing towards the achievement of financial goals. With a cloud-based portfolio management system, asset managers are able to gather all the data they need in one hub. This in turn allows them to provide all the relevant stakeholders easy access to files, enabling collaboration. When portfolio managers, fund administrators, and other third party service providers can effectively and quickly exchange information, the experience of asset management becomes a seamless process that fosters quick return on investment (ROI).
Firms may invest towards the set-up of in-house portfolio management systems, or access these through top asset servicing firms. These firms can develop proprietary tools, on top of handling a full range of back and middle-office functions.
Below is a discussion of some of the benefits of investing in the best version of this tool.
Keeping up to date with industry developments. With the help of a portfolio management system, client-investors can be provided with reporting tools that are always available online. This allows asset managers to look at upcoming trends, assess their impact on the fund’s performance, and accordingly prepare measures that address emerging risks.
It offers a comprehensive view of all factors needed in making investment decisions. Portfolio management is about dealing with a lot of metrics, and using the insight derived from them to guide future actions. The best of breed portfolio management systems offer a consolidated view of past transactions, the assets under management, and cash flow, allowing for quick and sound decision-making.
Complying with all pertinent regulations becomes much easier. The past financial crises and major investment scandals truly rocked the industry, and spurred a number of government regulations designed to protect the interest especially of the client-investors. But dealing with all of these tight regulations is a huge and time-consuming chore for most firms. When they fail to comply, they are subject to penalties and legal action, on top of seeing their reputation crumble. By adopting a portfolio management technology, most of the procedures related to compliance can be automated, such that the entire process need not take up so much of the company’s resources.
It enables strategizing towards the achievement of financial goals. With a cloud-based portfolio management system, asset managers are able to gather all the data they need in one hub. This in turn allows them to provide all the relevant stakeholders easy access to files, enabling collaboration. When portfolio managers, fund administrators, and other third party service providers can effectively and quickly exchange information, the experience of asset management becomes a seamless process that fosters quick return on investment (ROI).
Firms may invest towards the set-up of in-house portfolio management systems, or access these through top asset servicing firms. These firms can develop proprietary tools, on top of handling a full range of back and middle-office functions.
Wednesday, April 20, 2016
How technology impacts the fund administration business
Market conditions are driving the sustained growth of the fund administration sector. Indeed, more and more business and investors are getting enticed by the benefits of using a third party administrator. At the same time, as the market grows, competition also becomes stiffer. Performance is key to gaining competitive advantage among peers. Of course, performance is affected by how effective the tools used by the administrators are.
Technology and analytics play a big role in setting the operational conditions. Through technology, administrators are given the tools to establish the most efficient and least costly operating model. With the growing clamor for transparency and reporting, the role of data analytics in fund administration becomes more pronounced. Investing in innovative technologies that help establish best practices and consolidate information has become an integral strategy to remain competitive.
However, this increased dependency on technology has also exposed the industry to cyber attacks. Cyber criminals have also become more and more sophisticated with their technologies and approach that cyber risk management can no longer be relegated to the periphery but must be included in the core competencies to ensure security. Funds are associated with a great deal of personal information that must be protected and kept private. An administrator’s policy on how this set of information is protected is a key factor for clients. Now it is fundamental to put in place a robust cyber risk assessment process that tries to strike a balance between accessibility and protection.
Data management and analytics also plays a big role in the struggle of administrators to institute reliable customer identification. Administrators must ensure that clients are protected from identity theft. It must also do its part in securing its own yard from perpetrators of fraud and money laundering. Regulatory requirements that compel administrators to perform the above obligations are enforced more strictly now that threats are more imminent.
In the United States, because of the regulatory requirements that have become stricter, transparency in fund administration has become ever more important. Existing standards and reporting methods are now put under pressure. The requirements compel administrators to gather data from different sources, aggregate it, and submit to the regulating body. To minimize its impact on resources, administrators turned to modern software solutions.
The environment continues to be challenging for fund administrators. Being able to adapt operational model to these changes and investing in technologies, as well as seeking the help of more experienced third party providers can help the firm become more agile.
Technology and analytics play a big role in setting the operational conditions. Through technology, administrators are given the tools to establish the most efficient and least costly operating model. With the growing clamor for transparency and reporting, the role of data analytics in fund administration becomes more pronounced. Investing in innovative technologies that help establish best practices and consolidate information has become an integral strategy to remain competitive.
However, this increased dependency on technology has also exposed the industry to cyber attacks. Cyber criminals have also become more and more sophisticated with their technologies and approach that cyber risk management can no longer be relegated to the periphery but must be included in the core competencies to ensure security. Funds are associated with a great deal of personal information that must be protected and kept private. An administrator’s policy on how this set of information is protected is a key factor for clients. Now it is fundamental to put in place a robust cyber risk assessment process that tries to strike a balance between accessibility and protection.
Data management and analytics also plays a big role in the struggle of administrators to institute reliable customer identification. Administrators must ensure that clients are protected from identity theft. It must also do its part in securing its own yard from perpetrators of fraud and money laundering. Regulatory requirements that compel administrators to perform the above obligations are enforced more strictly now that threats are more imminent.
In the United States, because of the regulatory requirements that have become stricter, transparency in fund administration has become ever more important. Existing standards and reporting methods are now put under pressure. The requirements compel administrators to gather data from different sources, aggregate it, and submit to the regulating body. To minimize its impact on resources, administrators turned to modern software solutions.
The environment continues to be challenging for fund administrators. Being able to adapt operational model to these changes and investing in technologies, as well as seeking the help of more experienced third party providers can help the firm become more agile.
Monday, February 15, 2016
Technology a Must for Hedge Fund Compliance
Years ago, incorporating cutting-edge technologies to investment operations was considered as mere luxury for only the biggest firms. But with the complexity of regulatory requirement and a rising demand for transparency from bodies like the SEC and CFTC, as well as the investors, technology is now a necessity for hedge fund compliance — regardless of the firm’s size.
According to Forbes, many hedge fund managers utilize technology for record-keeping requirements, as most solutions provide record retention features and electronic compliance certification features. Some also offer compliance calendars that automatically remind managers of compliance dates and regulatory deadlines.
While these solutions are primarily used for compliance management, here are other crucial and time-consuming areas that can be simplified through technology:
Database management and security. With an advanced data management platform, investors can easily transform details into meaningful insights for improved decision making. Competitive tools now offer automated display and comparison of multiple and dynamic portfolios for faster data analysis. Additionally, with the help of technology, security of all confidential data is ensured through encryption, change privileges, audit trail and control access features.
Portfolio optimization. More than providing a dashboard that keeps all the big data, advanced tools now have the ability to evaluate and optimize multi-year plans and scenarios, perform business-case cash-flow analysis and even quantify project risks. These features further help streamline operations by computing and displaying an efficient frontier of portfolios and providing “sandbox analysis.”
Project management and resource management. As tools can now generate updated financial budget predictions though correlation of all data, technology is also utilized to ensure that assets are properly allocated to specific channels where they have great potential, and that investment strategies are executed at the right time.
Business continuity and disaster recovery. With the help of advanced portfolio management solutions, asset managers are considered more equipped when it comes to formulating disaster recovery plans, hence ensuring business continuity even during the most crucial times. In addition, corporate researchers Aberdeen Group found out that solutions help administrators to fix issues in an average of 2.1 hours, as compared to the traditional 8 hours.
In the end, hedge fund compliance is more than just about meeting regulatory requirements on time; it is a process that concerns the overall efficiency of an investment operation. Choosing a technology partner that can offer an efficient and complete solution can greatly help fund managers achieve thier clients’ goals, and attract even more investors.
According to Forbes, many hedge fund managers utilize technology for record-keeping requirements, as most solutions provide record retention features and electronic compliance certification features. Some also offer compliance calendars that automatically remind managers of compliance dates and regulatory deadlines.
While these solutions are primarily used for compliance management, here are other crucial and time-consuming areas that can be simplified through technology:
Database management and security. With an advanced data management platform, investors can easily transform details into meaningful insights for improved decision making. Competitive tools now offer automated display and comparison of multiple and dynamic portfolios for faster data analysis. Additionally, with the help of technology, security of all confidential data is ensured through encryption, change privileges, audit trail and control access features.
Portfolio optimization. More than providing a dashboard that keeps all the big data, advanced tools now have the ability to evaluate and optimize multi-year plans and scenarios, perform business-case cash-flow analysis and even quantify project risks. These features further help streamline operations by computing and displaying an efficient frontier of portfolios and providing “sandbox analysis.”
Project management and resource management. As tools can now generate updated financial budget predictions though correlation of all data, technology is also utilized to ensure that assets are properly allocated to specific channels where they have great potential, and that investment strategies are executed at the right time.
Business continuity and disaster recovery. With the help of advanced portfolio management solutions, asset managers are considered more equipped when it comes to formulating disaster recovery plans, hence ensuring business continuity even during the most crucial times. In addition, corporate researchers Aberdeen Group found out that solutions help administrators to fix issues in an average of 2.1 hours, as compared to the traditional 8 hours.
In the end, hedge fund compliance is more than just about meeting regulatory requirements on time; it is a process that concerns the overall efficiency of an investment operation. Choosing a technology partner that can offer an efficient and complete solution can greatly help fund managers achieve thier clients’ goals, and attract even more investors.
Monday, November 16, 2015
Technology Features That Promote Hedge Fund Compliance Management
Across the globe, more and more hedge fund companies are investing in technologies to promote compliance management in their operations. This trend towards promoting hedge fund compliance through technology has been observed across small, mid-size, and large fund administrators: many are indeed willing to allocate the budget needed to enable their firms to comply with new regulations.
Triggering this development would be the increased reporting requirements set by SEC and CFTC, as well as the growing demands of investors who seek to know more about the performance of their funds. And these requirements are addressed by the following features of today’s set of compliance management platforms:
Portfolio management. Hedge fund managers benefit from advanced tools that allow for the monitoring limits, blocking trades that are prohibited by law, and recording of trade allocations. These allow for efficient management of trade portfolio and prompt and accurate reporting of positions in securities.
Reporting. The reporting requirements of authorities demand that hedge fund companies maintain infrastructure for the processing and storing large data, which can be a costly endeavor for smaller and mid-size businesses. This has encouraged many of them to purchase commercial hedge fund software, develop technology solutions in-house, or outsource to asset servicing firms.
Client relations management. Hedge funds management entails keeping track of a huge body of communications between investors and managers. Monitoring and storing this communication is not only important for compliance to regulatory demands; they are also necessary for the review of transaction histories and the conduct of post-mortem that clients may wish to embark in.
Recording of employee accounts. Recording, reviewing, and assessing personal account brokerage statements of employees is a tedious process that should nevertheless be encouraged to counter-check for suspicious or irresponsible trading practices. Through features that allow for surveillance and recording of individual accounts, hedge fund companies can ensure that they are after only the best execution of trade transactions.
Compliance management. Finally, new technologies have allowed hedge fund managers to more easily and conveniently adjust to the increased complexity of hedge fund compliance. These tools include compliance calendars with reminders for submission deadlines and registrations, automated recording, among other features.
With authorities in the securities sector here and abroad becoming stricter when it comes to the implementation of compliance regulations, hedge fund managers can truly benefit from forging relationships with asset servicing firms that can provide advanced hedge fund compliance management technology solutions.
Triggering this development would be the increased reporting requirements set by SEC and CFTC, as well as the growing demands of investors who seek to know more about the performance of their funds. And these requirements are addressed by the following features of today’s set of compliance management platforms:
Portfolio management. Hedge fund managers benefit from advanced tools that allow for the monitoring limits, blocking trades that are prohibited by law, and recording of trade allocations. These allow for efficient management of trade portfolio and prompt and accurate reporting of positions in securities.
Reporting. The reporting requirements of authorities demand that hedge fund companies maintain infrastructure for the processing and storing large data, which can be a costly endeavor for smaller and mid-size businesses. This has encouraged many of them to purchase commercial hedge fund software, develop technology solutions in-house, or outsource to asset servicing firms.
Client relations management. Hedge funds management entails keeping track of a huge body of communications between investors and managers. Monitoring and storing this communication is not only important for compliance to regulatory demands; they are also necessary for the review of transaction histories and the conduct of post-mortem that clients may wish to embark in.
Recording of employee accounts. Recording, reviewing, and assessing personal account brokerage statements of employees is a tedious process that should nevertheless be encouraged to counter-check for suspicious or irresponsible trading practices. Through features that allow for surveillance and recording of individual accounts, hedge fund companies can ensure that they are after only the best execution of trade transactions.
Compliance management. Finally, new technologies have allowed hedge fund managers to more easily and conveniently adjust to the increased complexity of hedge fund compliance. These tools include compliance calendars with reminders for submission deadlines and registrations, automated recording, among other features.
With authorities in the securities sector here and abroad becoming stricter when it comes to the implementation of compliance regulations, hedge fund managers can truly benefit from forging relationships with asset servicing firms that can provide advanced hedge fund compliance management technology solutions.
Monday, August 10, 2015
Enhancing Operations with a Cloud-based Portfolio Management System
In 2014, cloud-based portfolio management systems drew great exposure – possibly the greatest since their conception – after more companies in the finance industry realized the transformative benefits of moving to software as a service (SaaS) from on-premises software.
In addition to the benefit of improved security—putting an end to the rising tide of data breaches at high profile institutions, for example—some of the advantages of moving to a cloud-based portfolio management system include the following:
Real-time monitoring and evaluation of data. The fundamental role of cloud-based portfolio management system is to provide clients with comprehensive and consistent reporting and analytical tools accessible through the web 24/7. With an advanced data management platform, asset managers can promptly manage and mitigate risks, as well as transform details into meaningful insights for improved decision-making. They can do this from wherever they are, boosting individual and company productivity.
Lower operational costs. Cloud-computing solutions are much easier to deploy than their on-site counterparts. Indeed, instead of devoting resources and hiring employees for the task of developing and managing the solutions, they can simply pay for the service created by companies that specialize in this area. Because of this, businesses can expect minimal project start-up costs, and also be able to focus on their core competencies. Also, since these kinds of services are basically pay as you go, there would be no need for capital expenditure (Cap-Ex) at all, according to SalesForce. Businesses can then save their funds for Cap-Ex for Operational Expenses.
Higher return on investment. This technology lets administrators and authorized third parties easily keep their findings synched well by compiling all the files in one central location, thereby allowing them to conduct revenue-generating actions instantly. A survey by Frost & Sullivan supports this positive result by saying that companies which invested in collaboration technology benefited from a good 400% return on investment (ROI).
Faster disaster recovery. In the event of disasters, business intelligence provider Aberdeen Group found out that businesses which moved to cloud were able to fix issues in an average of 2.1 hours, as compared to the traditional 8 hours for premise-based solutions.
These benefits make it imperative for companies engaged in asset management to consider investing in a cloud-based portfolio management systems. Some of these solutions feature dashboards for capital statements, financial statements, capital calls and distributions, tax reports and other investor-specific documents in one application, streamlining the process and improving overall efficiency.
In addition to the benefit of improved security—putting an end to the rising tide of data breaches at high profile institutions, for example—some of the advantages of moving to a cloud-based portfolio management system include the following:
Real-time monitoring and evaluation of data. The fundamental role of cloud-based portfolio management system is to provide clients with comprehensive and consistent reporting and analytical tools accessible through the web 24/7. With an advanced data management platform, asset managers can promptly manage and mitigate risks, as well as transform details into meaningful insights for improved decision-making. They can do this from wherever they are, boosting individual and company productivity.
Lower operational costs. Cloud-computing solutions are much easier to deploy than their on-site counterparts. Indeed, instead of devoting resources and hiring employees for the task of developing and managing the solutions, they can simply pay for the service created by companies that specialize in this area. Because of this, businesses can expect minimal project start-up costs, and also be able to focus on their core competencies. Also, since these kinds of services are basically pay as you go, there would be no need for capital expenditure (Cap-Ex) at all, according to SalesForce. Businesses can then save their funds for Cap-Ex for Operational Expenses.
Higher return on investment. This technology lets administrators and authorized third parties easily keep their findings synched well by compiling all the files in one central location, thereby allowing them to conduct revenue-generating actions instantly. A survey by Frost & Sullivan supports this positive result by saying that companies which invested in collaboration technology benefited from a good 400% return on investment (ROI).
Faster disaster recovery. In the event of disasters, business intelligence provider Aberdeen Group found out that businesses which moved to cloud were able to fix issues in an average of 2.1 hours, as compared to the traditional 8 hours for premise-based solutions.
These benefits make it imperative for companies engaged in asset management to consider investing in a cloud-based portfolio management systems. Some of these solutions feature dashboards for capital statements, financial statements, capital calls and distributions, tax reports and other investor-specific documents in one application, streamlining the process and improving overall efficiency.
Wednesday, March 4, 2015
Aspects to Consider in Choosing SOX Compliance Software
When the U.S. Congress passed the Sarbanes-Oxley Act of 2002, a legislation that aims to protect shareholders and the general public from fraudulent practices and accounting errors in the enterprise, SOX compliance software solutions started to flood the IT world.
While administrators don’t have any choice to but to comply with this Act, they still have the freedom to choose which among today’s available solutions can truly address their needs and support their organizational framework. The bidding process can be a challenging and lengthy experience both for the IT provider and the client, but with a deeper understanding of what the SOX act is all about, both parties can streamline their objectives and requirements.
Here are some of the major aspects that need to be considered:
The nature of the Act. The SOX Act was passed in response to several corporate scandals that involved skewed reporting of selected financial transactions.
“For instance, companies such as Enron, WorldCom and Tyco covered up or misrepresented a variety of questionable transactions, resulting in huge losses to stakeholders and a crisis in investor confidence,” SOX-online reports.
According to TechTarget Network, there are 11 titles to the act, which describe financial reporting requirements that organizations must comply with. These include new standards for corporate accountability, along with penalties for acts of unlawful activity.
Through these policies and regulations, the organizational framework of a firm is expected to become more solid and responsive – corporate boards and executives must maintain transparent communication, like how CEOs, CIOs, and CFOs must work in harmony as they hold the accountability for the accuracy of financial statements.
Who should comply with the Act. Contrary to the notion that the SOX Act only applies to US-based companies, independent nonprofit global association ISACA highlights, “No, there are potential international implications as well. In fact, among the many factors that must be considered in complying with Sarbanes-Oxley, some will uniquely impact international organizations.”
Companies outside the US territory are required to examine their IT operations and identify if they are significant to the organization as a whole. “The assessment of whether an IT business unit is significant can be impacted by the materiality of transactions processed by the IT business unit, the potential impact on financial reporting if an IT business unit fails and other qualitative risk factors,” explains ISACA.
SOX audits. Since the Sarbanes-Oxley Act of 2002 was written to avert scams and frauds, one must expect SOX audits to be more demanding. In fact, the Act requires all financial reports to include an internal control report. “This is designed to show that not only are the company's financial data accurate, but the company has confidence in them because adequate controls are in place to safeguard financial data,” says SOX-online. There are also year-end financial disclosure reports, where a SOX auditor is required to review controls, policies and procedures during a Section 404 audit.
To have a comprehensive view of data, accomplish accurate reports, and constantly meet SOX requirements, look for a SOX compliance software solution that can perform document management, risk analysis, risk management, business intelligence and inventory management functionalities. This can lower your operational costs, while speeding up the meticulous process of financial reporting.
While administrators don’t have any choice to but to comply with this Act, they still have the freedom to choose which among today’s available solutions can truly address their needs and support their organizational framework. The bidding process can be a challenging and lengthy experience both for the IT provider and the client, but with a deeper understanding of what the SOX act is all about, both parties can streamline their objectives and requirements.
Here are some of the major aspects that need to be considered:
The nature of the Act. The SOX Act was passed in response to several corporate scandals that involved skewed reporting of selected financial transactions.
“For instance, companies such as Enron, WorldCom and Tyco covered up or misrepresented a variety of questionable transactions, resulting in huge losses to stakeholders and a crisis in investor confidence,” SOX-online reports.
According to TechTarget Network, there are 11 titles to the act, which describe financial reporting requirements that organizations must comply with. These include new standards for corporate accountability, along with penalties for acts of unlawful activity.
Through these policies and regulations, the organizational framework of a firm is expected to become more solid and responsive – corporate boards and executives must maintain transparent communication, like how CEOs, CIOs, and CFOs must work in harmony as they hold the accountability for the accuracy of financial statements.
Who should comply with the Act. Contrary to the notion that the SOX Act only applies to US-based companies, independent nonprofit global association ISACA highlights, “No, there are potential international implications as well. In fact, among the many factors that must be considered in complying with Sarbanes-Oxley, some will uniquely impact international organizations.”
Companies outside the US territory are required to examine their IT operations and identify if they are significant to the organization as a whole. “The assessment of whether an IT business unit is significant can be impacted by the materiality of transactions processed by the IT business unit, the potential impact on financial reporting if an IT business unit fails and other qualitative risk factors,” explains ISACA.
SOX audits. Since the Sarbanes-Oxley Act of 2002 was written to avert scams and frauds, one must expect SOX audits to be more demanding. In fact, the Act requires all financial reports to include an internal control report. “This is designed to show that not only are the company's financial data accurate, but the company has confidence in them because adequate controls are in place to safeguard financial data,” says SOX-online. There are also year-end financial disclosure reports, where a SOX auditor is required to review controls, policies and procedures during a Section 404 audit.
To have a comprehensive view of data, accomplish accurate reports, and constantly meet SOX requirements, look for a SOX compliance software solution that can perform document management, risk analysis, risk management, business intelligence and inventory management functionalities. This can lower your operational costs, while speeding up the meticulous process of financial reporting.
Thursday, January 15, 2015
Why You Should Consider Using Hedge Fund Software
If you are the manager or owner of a hedge fund, then you know just how chaotic it can be to properly manage it. Due to the constant changes in the economy, uncertainty hanging in the air, and a high level of market volatility; it may help you considerably to start using hedge fund software in order to keep everything a bit more stable. Several hedge fund managers and owners are hesitant about how to go about making the process easier. In today's world, it isn't always easy to manage all your client's accounts effectively and efficiently on your own. There's a great deal of competition to deal with and in the financial world, things tend to change on a daily basis; and when they do, it's necessary to accurately update the accounts of your clients. By far, the easiest and simplest way to accomplish this is through the use of hedge fund software.
How Hedge Fund Software Helps Manage Financial Accounts
One of the key aspects of utilizing hedge fund software is realizing just how efficient it is at managing various financial accounts. It doesn't actually matter how difficult or complex the situation, because when you employ this kind of innovative software the solutions become readily available rather quickly. On the other hand, trying to manually manage several accounts is not only difficult, but virtually impossible. Using the right software will enable you to successfully track any elements impacting your fund and also help you fully organize key details in the simplest way possible. By using software, there's no need to rush or make the process any more complicated than it has to be.
Additional Benefits of Using Software to Manage Hedge Funds
Once you decide to use hedge fund management software, the many benefits become quite obvious. For example, management software lets you easily keep your client contact information updated, instantly provide your clients with important information regarding their accounts, and makes the overall process of managing funds that much easier. All of this adds up to enhanced customer service on behalf of your clients, something they'll surely be grateful for once they start comparing funds in which to invest.
Finding the Best Hedge Fund Management Software
Finding the ideal software to manage your hedge fund accounts will take a bit of time and research in order to achieve the best results. There are endless companies that offer this type of software with many similarities, so taking your time to determine which software platform works best for your particular needs in addition to the key features you desire is worth the extra effort.
There are various ranges to choose from in terms of price. However, it's important to note that just because certain software is more expensive doesn't necessarily mean it provides 5-star results. In fact, several of the more costly programs can be much more difficult to use as well as confusing to comprehend. So, try to find hedge fund software that offers a demo version and give it a try first before making any commitments to give you a good idea of what you're in for. Quality software should ideally be easy to use, solve your solutions, make your tasks easier, and be reasonably priced.
With all these outstanding benefits and advantages, it's easy to understand why so many hedge fund allocators continue to rely on hedge fund software in order to stay up to date with both analyses and important information regarding their client's accounts, which is precisely why you should consider investing in quality hedge fund software yourself so you'll always be in the black, and not the red.
How Hedge Fund Software Helps Manage Financial Accounts
One of the key aspects of utilizing hedge fund software is realizing just how efficient it is at managing various financial accounts. It doesn't actually matter how difficult or complex the situation, because when you employ this kind of innovative software the solutions become readily available rather quickly. On the other hand, trying to manually manage several accounts is not only difficult, but virtually impossible. Using the right software will enable you to successfully track any elements impacting your fund and also help you fully organize key details in the simplest way possible. By using software, there's no need to rush or make the process any more complicated than it has to be.
Additional Benefits of Using Software to Manage Hedge Funds
Once you decide to use hedge fund management software, the many benefits become quite obvious. For example, management software lets you easily keep your client contact information updated, instantly provide your clients with important information regarding their accounts, and makes the overall process of managing funds that much easier. All of this adds up to enhanced customer service on behalf of your clients, something they'll surely be grateful for once they start comparing funds in which to invest.
Finding the Best Hedge Fund Management Software
Finding the ideal software to manage your hedge fund accounts will take a bit of time and research in order to achieve the best results. There are endless companies that offer this type of software with many similarities, so taking your time to determine which software platform works best for your particular needs in addition to the key features you desire is worth the extra effort.
There are various ranges to choose from in terms of price. However, it's important to note that just because certain software is more expensive doesn't necessarily mean it provides 5-star results. In fact, several of the more costly programs can be much more difficult to use as well as confusing to comprehend. So, try to find hedge fund software that offers a demo version and give it a try first before making any commitments to give you a good idea of what you're in for. Quality software should ideally be easy to use, solve your solutions, make your tasks easier, and be reasonably priced.
With all these outstanding benefits and advantages, it's easy to understand why so many hedge fund allocators continue to rely on hedge fund software in order to stay up to date with both analyses and important information regarding their client's accounts, which is precisely why you should consider investing in quality hedge fund software yourself so you'll always be in the black, and not the red.
Thursday, October 30, 2014
How to Choose Hedge Fund Software
Selecting the best hedge fund software will vary depending upon the goals and structure of the fund. Every program offers a wide range of options in the areas of partnership structure, portfolio management, marketing and accounting. Aside from that, each program of them is unique. Even though the perfect hedge fund software will differ with each fund, there are many reasons why choosing a good program is an important part of running a successful hedge fund.
Know The Difference
Hedge fund software can differ greatly in terms of benefits and features depending on the fund's goals and needs. A number of programs have unique features that support acquisitions and mergers while others are designed for investment in real estate.
Although the features are different, good hedge fund software should assist users in the administration of their hedge funds. Aside from that, it is important to choose software that has the capability to track multiple investment opportunities while at the same time keeping track of the capital contribution of each investor.
Portfolio Management Modules
The majority of the best hedge fund programs out there will be able to provide users with a portfolio management module that will assist in the management of different investment types such as currencies, commodities, stocks, bonds and much more.
The portfolio management component will allow a user to gain insight on the fund's performance through a wide range of investment return metrics. Usually, the best hedge fund software also includes calculations on the internal rate of return, return on equity and a number of additional performance-related metrics.
Marketing Module
Software for a particular hedge fund can also be useful in obtaining new investors. The majority of the best software for hedge funds have a marketing module that enables a potential investor to log into the system to learn more about their investment opportunities and the fund itself. The marketing module can also help a fund manager implement an investor relations program that is streamlined automatically.
Involve the Key Stakeholders
The selection process should also involve key stakeholders from across all business functions including operations, accounting and technology. By considering their different views, a company will be able to choose software for their hedge fund that can meet their present needs.
This enables them to predict future concerns while also helping to identify the gaps in their portfolio. Obtaining opinions can also add value and provide an objective and arbitrational view that takes much of the emotion out of the selection process.
Always Engage with Possible Software Providers
Once hedge fund managers know the purpose of the software and the features that they need, the next step is to interact and engage with prospective software providers. This enables them to identify any gaps in the software that could be a huge headache for investors in the future.
Aside from that, they should discuss implementation considerations with the software provider. This includes any required data conversions along with the capacities and capabilities of the software and the service level for production support.
When choosing software for hedge funds, people should always be wary of low-cost alternatives. They should recognize that the total cost of ownership entails both the acquisition of the software and the ongoing cost of future upgrades, support and maintenance.
The Bottom Line
Choosing the best software will enable hedge fund managers to incorporate a wide range of options in one program. Regardless of what software is chosen, the best one will always have features that meet the unique needs of their clients.
Know The Difference
Hedge fund software can differ greatly in terms of benefits and features depending on the fund's goals and needs. A number of programs have unique features that support acquisitions and mergers while others are designed for investment in real estate.
Although the features are different, good hedge fund software should assist users in the administration of their hedge funds. Aside from that, it is important to choose software that has the capability to track multiple investment opportunities while at the same time keeping track of the capital contribution of each investor.
Portfolio Management Modules
The majority of the best hedge fund programs out there will be able to provide users with a portfolio management module that will assist in the management of different investment types such as currencies, commodities, stocks, bonds and much more.
The portfolio management component will allow a user to gain insight on the fund's performance through a wide range of investment return metrics. Usually, the best hedge fund software also includes calculations on the internal rate of return, return on equity and a number of additional performance-related metrics.
Marketing Module
Software for a particular hedge fund can also be useful in obtaining new investors. The majority of the best software for hedge funds have a marketing module that enables a potential investor to log into the system to learn more about their investment opportunities and the fund itself. The marketing module can also help a fund manager implement an investor relations program that is streamlined automatically.
Involve the Key Stakeholders
The selection process should also involve key stakeholders from across all business functions including operations, accounting and technology. By considering their different views, a company will be able to choose software for their hedge fund that can meet their present needs.
This enables them to predict future concerns while also helping to identify the gaps in their portfolio. Obtaining opinions can also add value and provide an objective and arbitrational view that takes much of the emotion out of the selection process.
Always Engage with Possible Software Providers
Once hedge fund managers know the purpose of the software and the features that they need, the next step is to interact and engage with prospective software providers. This enables them to identify any gaps in the software that could be a huge headache for investors in the future.
Aside from that, they should discuss implementation considerations with the software provider. This includes any required data conversions along with the capacities and capabilities of the software and the service level for production support.
When choosing software for hedge funds, people should always be wary of low-cost alternatives. They should recognize that the total cost of ownership entails both the acquisition of the software and the ongoing cost of future upgrades, support and maintenance.
The Bottom Line
Choosing the best software will enable hedge fund managers to incorporate a wide range of options in one program. Regardless of what software is chosen, the best one will always have features that meet the unique needs of their clients.
Monday, May 26, 2014
Advantages Gained By Using Hedge Fund Software
There are a wide variety of advantages to be gained by using hedge fund software. This is because hedge funds are exceedingly complicated and will require a lot of data to be kept in order for them to be truly efficient. In order to easily comply with the Operating Protocol Enabling Risk Aggregation standards that have been set forth to minimize risk for investors and provide effective reports to regulators from outside the hedge fund community, hedge fund software needs to be used.
1. Accounting Services
One advantage to be gained by using accounting software is that it allows companies to easily keep accurate accounts of their portfolios. Because hedge funds tend to be tremendously diversified, it will be more difficult for managers to keep track of all of the details. Using hedge fund management software will ensure that all of the details are recorded in a manner that is easy to analyze and use to complete taxes and report to regulators.
2. Keep Up To Date on Risk and Performance
Good decision making requires the most up to date information possible. Hedge fund software provides constant updates throughout the day regarding how well a certain aspect of a portfolio is doing, as well as the amount of risk that each component of the portfolio faces. Getting these updates manually would require hours of work. Using hedge fund management software quarters this time so that managers can get the information they need to maximize a hedge fund's profits.
3. Automate Workflows
Another advantage is that the workflows that are associated with actions that need to be taken after trades have been made, including fixed incomes and derivatives, will be done by the software. This is helpful because it is one less details that the hedge fund manager needs to deal with, as well as ensures that the actions are completed as quickly and efficiently as possible.
4. Increase Overall Credibility
The overall credibiliy of a hedge fund can be greatly improved through the use of hedge fund software because it will improve the efficiency of the hedge fund, the reports that are given to those who have invested into the fund, reduce the risks associated with the hedge fund, and increase profits. This will cause both regulators and investors alike to regard the hedge fund with vastly greater esteem and heartfelt trust.
1. Accounting Services
One advantage to be gained by using accounting software is that it allows companies to easily keep accurate accounts of their portfolios. Because hedge funds tend to be tremendously diversified, it will be more difficult for managers to keep track of all of the details. Using hedge fund management software will ensure that all of the details are recorded in a manner that is easy to analyze and use to complete taxes and report to regulators.
2. Keep Up To Date on Risk and Performance
Good decision making requires the most up to date information possible. Hedge fund software provides constant updates throughout the day regarding how well a certain aspect of a portfolio is doing, as well as the amount of risk that each component of the portfolio faces. Getting these updates manually would require hours of work. Using hedge fund management software quarters this time so that managers can get the information they need to maximize a hedge fund's profits.
3. Automate Workflows
Another advantage is that the workflows that are associated with actions that need to be taken after trades have been made, including fixed incomes and derivatives, will be done by the software. This is helpful because it is one less details that the hedge fund manager needs to deal with, as well as ensures that the actions are completed as quickly and efficiently as possible.
4. Increase Overall Credibility
The overall credibiliy of a hedge fund can be greatly improved through the use of hedge fund software because it will improve the efficiency of the hedge fund, the reports that are given to those who have invested into the fund, reduce the risks associated with the hedge fund, and increase profits. This will cause both regulators and investors alike to regard the hedge fund with vastly greater esteem and heartfelt trust.
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