23 July 2019

Geneva for emerging managers: Building out an infrastructure for long term growth

By Nicholas Nolan

While the news is focused on hedge fund liquidation, there is steady growth in the number of new hedge funds launching according to the HFR Market Microstructure Report. Comparing Q1-2019 with Q4-2018, there was a 23% increase in the number of hedge fund launches [1]. Speaking to Pensions & Investments, Kenneth J. Heinz, President of HFR, explains that “new fund launches have seen increases in launch size with investor emphasis on liquidity, low fees and innovative applications of ESG and diversity concepts." [2]

As more hedge funds enter the market at increasingly larger launch sizes, these firms should be looking to build out their infrastructure for the long term. Why settle for a system you will likely have to “rip and replace” when you reach the next stage of growth? SS&C Advent’s Geneva® platform is widely considered the gold standard for fund management, accounting, and reporting worldwide for firms of all assets classes and AUM’s that can serve a fund over the life of the business. As your business grows or your investments strategies diversify, you have the option of cloud-based or on premise deployment and to move any outsourced operations back in-house. No other solution gives you that same measure of flexibility and scalability for long-term growth without a messy data conversion.

As firms consider the long-term success of their fund Geneva delivers an unmatched combination of capabilities, including:

  • Support for all global asset classes, currencies and transaction types
  • Support for a full range of investment strategies, from the most straightforward to the most complex
  • Support for all types of fund structures, including hedge funds, private equity, hybrid funds, SMA’s and funds of funds
  • Industry standard general ledger database for accounting integrity
  • Real-time dashboard views of positions, performance, P&L and risk exposure
  • Time-series data for reporting as of specific points in time
  • Dynamic updates to dependent transactions
  • No batch processing
  • Up-to-the-second market data from the leading data providers
  • Counterparty connectivity
  • Integration with industry-leading, best-of-breed trade order management platforms
  • Integrated investor accounting and servicing with Geneva® World Investor

 

The Geneva platform is equipped with capabilities to outsource or co-source operational functions; easing the burden from complex middle-and back-office services. Firms can elect from an a la carte menu, each performed by a dedicated team to custom-tailor workflows to the required specifications. Available services include:

  • Setup of OTC security masters: TRS, IRS, CDX and CDS
  • Asset servicing, including but not limited to swap resets, dividends, splits, FX, income, factor, corporate actions including voluntaries, credit events, defaults and bank debt credit activity
  • Price monitoring: Stale, Missing and Variances
  • Market, and reference data updates
  • Counterparty integration monitoring
  • Performance management including daily performance updates by portfolio, security, sector, or other criteria you define.
  • Reporting, including period-end report generation and packaging,
  • Comprehensive reconciliation services to Street and Fund Admin; NAV, transaction, position, and P&L. Leverage SS&C’s industry-leading Recon® platform. Reconcile transactions from any trading system from any technology provider.

 

An added benefit for firms co-sourcing with Geneva includes Advent Lumis™, a centralized, fully integrated data governance, workflow management, and exception processing solution. Lumis automates the process of identifying and resolving data exceptions, eliminating time-consuming and error-prone manual processes. With Lumis, firm can be confident in the quality of data going into and out of Geneva while enjoying smooth workflows unimpeded by data discrepancies.

As we progress into the second half of the year, the market will continue to evolve and award those funds and new entrants that employ winning and diversified strategies. For those funds entering the market in 2019 to be successful, a focus on longevity and growth is essential. The team behind Geneva’s outsourcing business have long-term experience in investment management technology and operations and function as an extension of your middle and back offices, thus complementing in-house resources with deep specialized expertise in Geneva. If you are a member of the new class of 2019 hedge funds, or a seasoned fund, take a look at why There is no Alternative to Geneva to learn more.

 

Sources:

[1] Hedge Fund Research, Inc. New hedge fund launches rise as risk tolerance returns. HFR Market Microstructure Report. 28 June 2019.

[2] Williamson, Christine. Pensions & Investments. Hedge fund liquidations exceed launches for third straight quarter. 28 June 2019.