Portfolio Management System
INSA PMS FUNCTIONALITY IN A NUT SHELL
Portfolio Management Hierarchical structure – company, client, portfolio, custody account Multiple consolidation possibilities including ad hoc Portfolio analysis including order generationBack to Solutions
Perfect for Banks and Independent Asset Managers
Both banks and independent asset managers have many requirements in common. Both have clients who have deposited assets either directly or indirectly with them. The Insa user, be it bank or independent asset manager is provided with the following functionality.
The client reporting should be clear and understandable to each client. Clients differ however, some clients are satisfied with a basic overview of his assets together with an accurate assessment of his portfolio performance, other more sophisticated clients require a more detailed analysis showing perhaps not only the overall performance but also the performance per asset category and the associated risk. The client reporting should also be an attractive professional visiting card.
Client Asset Analysis
Managing the assets of more than 100 clients who have different investment aspirations demands a continual appraisement of the individual client portfolios, especially so in these very volatile times. The Insa system has a very sophisticated client analysis function as well as a comprehensive client information system.
Client Risk Analysis
In these very volatile times it is important to measure the risks that are involved with a predetermined client asset strategy. The system can calculate for example Sharpe Ratios for each single or group of portfolios as well as individual risks such as currency exposures.
Client Portfolio Modeling
Different asset strategies are assigned to clients who wish that investments are made on their behalf should lead to a specific goal such capital growth or income. The system allows portfolio models to be created which reflect these aims and allow for different investments to be made for the same asset strategy but differing sizes of portfolios.
Banks have their own host based computer system which captures data input for the client’s transactions. Most bank systems do not have the same portfolio reporting and analysis as the Insa system. Insa has written interfaces to a number of banking systems that allows data to be taken directly from the host system on a regular basis. The clients of independent asset managers have accounts with different banks. Insa has interfaces to a number of bank systems that allows transaction data to be imported directly. These interfaces include UBS Asset Link and other Swift based systems and State Street. The previously described interfaces gather securities information, security prices and exchange rates as well as the transactions themselves. Insa also has interfaces to most of the usual price feeds such as Reuters, Bloomberg, and Telekurs etc
Banks and independent asset managers usually charge a management fee for their services. The system can calculate these fees. The system can also calculate brokerage fees to third parties as well as retrocession payments on bank charges.
Client Information System
Insa provides a sophisticated Client Information System (CIS) that allows the user to keep a record of client contacts together with a link to electronic documents regarding client activity. The system allows a control to be kept of client documents seen by the user such as passport and compliance with US laws. Client investment restrictions can also be stored in CIS.
Data Take-Over from other PMS systems
Insa has built interfaces that will allow a user to automatically import into Insa data from other PMS systems. This saves considerable time and effort and ensures historical performance calculations.
GIPS (SPPS) Compliance
The system is fully GIPS 2002 compliant and has been audited by a well known international audit company.
Clients can be consolidated according to user defined categories including banks for asset managers, clients with similar asset strategies, composites for GIPS compliance etc.
Generation of Provisional Transactions
Transactions can be entered manually at the time a decision has been made to buy or sell a security for one or more clients, these are called provisional transactions, these transactions can be confirmed when the definite contract note is received. The lists of these provisional transactions can be transmitted to the relevant banks either in fax or email format.
Pension Funds & Insurances (Institutional Investors)
Institutional Investors have requirements that differ from banks and independent asset managers. When Insa is installed the Institutional Investor option is selected that automatically sets the system to the required functionality.
The system is able to work as a multi company application. An insurance company may have more than one “company”, life and non-life, similarly a pension fund may have more than “company” a pension fund for staff and a pension fund for management. Certain calculations may be different for the different companies and each company may have a separate financial accounting system.
Reporting is usually on a company basis. The portfolios held at different banks need to be consolidated though it is sometimes necessary to produce reporting for individual banks where portfolios are held. The system can produce reports for top management in graphical as well as tabular numerical reports. In addition the system provides the detailed reports for the investment professionals.
The system provides a comprehensive risk analysis for complete or partial investments. This includes derivative exposure, Sharpe ratio, currency and interest rate risk etc.
Asset Allocation Control
Most institutional investors have a strict asset allocation policy. The system can provide immediate information on adherence to the agreed asset allocation. Investment funds can be broken down into their basic exposures such as currency, investment instrument, and domicile and industry segment.
Institutional investors often require an interface to a financial book-keeping system to enable data entered into the Insa system to be passed to the book-keeping system. This saves entering data twice with the inherent risk of introducing errors. Insa has interfaces to a number of book-keeping systems including SAP/R3, Abacus, PeBe, Simultan etc. A number of banks provide a service by exporting transactions in electronic form. Insa can import these bank transactions, currently this service is available for UBS Asset-Link, and other Swift based systems and State Street. Insa can also import security prices and exchange rates from providers such Reuters, Bloomberg, Telekurs etc.
Year End Routines
At year end (or quarter/half year) investments may be revalued. Insa can calculate automatically this revaluation based on Lowest Value, Amortized Value, and Mark to Market etc.