29 April 2019

Spend time looking at results, not reconciling data

By Marc Flamini and Marianne Elie

As a Boston based CFO recently explained, “The fact that the Advent team can provide operational services allows me to spend more of my time looking at the results coming out of Geneva and thinking about our process to make sure our data is properly reconciled. I query the data every day and make sure the results meet my expectations. I like the fact that I can use my time to do that analysis.”

Firms across the alternative investment perspective are eager for insights and best practices in how to efficiently divest certain areas of their operations. Insights were shared by the Advent Outsourcing team on a webinar detailing how using Managed Services is benefitting hedge fund, asset managers, and other clients investing in alternatives by leveraging outsourcing services to streamline workflows around these complex products. The team currently manages the workflows of a variety of clients that span the investment spectrum, from start-up firms to large asset managers and hedge funds.

With regard to complex assets, one of the differentiating features that firms find most valuable in an outsourcing provider is assistance with well-defined functions allowing them to streamline their workflows. These include:

  • Security Master set up and maintenance
  • Trade Processing responsibilities
    • - OMS feed and manual inputs
    • - Financing rates/cost of carry
    • - Expenses and strategy tagging
  • Pricing updates and exception review from both automated and manual feeds
    • - Including reporting of  missing or stale prices
    • - Alerts to large price variances
    • - Missing or stale prices
    • - Price comparisons
  • Asset Servicing with daily analysis and exception reporting
  • Reconciliation for  daily positions, omnibus/ single accounts, trial balances and  allocations
  • Investor Servicing: Fund and class setup, investor setup, transaction process, period processing, and reconciliation

 

Questions that were asked during the webinar are items that everyone should consider in determining whether to leverage outsourcing services and focused on three key areas:

First, how the staffing of the AOS team is managed. As explained, Advent’s approach involves a mix of onshore and offshore talent, comprised of experienced and former Geneva power users:

  • Onshore: Building out Jacksonville, FL team
  • Offshore: Continual hiring in two offshore locations
  • Training: The focus is on developing staff the “right way”
  • Management: Focused on streamlining and automating the process

 

Second, questions centered on reporting and customization of reports. From a user perspective, employing AOS is no different than having Geneva installed in-house, but without the need for added IT infrastructure or internal system maintenance. Instead of relying on a third party’s shared platform and waiting for reports, firms have their own dedicated Geneva instance with AOS. The system is maintained and serviced, but you have full hands on access to all the functionality, reporting capabilities, customization, as well as underlying data within Geneva.

Third, a few questions came in regarding price variance and management. By electing Geneva with outsourcing, the AOS team manages all price feeds. The user will receives reports on missing or stale prices, as well as alerts to large price variances with price comparisons provided.

With Advent Outsourcing Services (AOS), our experts work with your team in the capacities you specify to enhance your operational processes. AOS offers flexible deployment options and managed services to satisfy your firm’s unique requirements. Learn more about best practices for firms using Geneva in leveraging AOS to manage daily reconciliation, improve data accuracy, strengthen compliance readiness, and much more. The recorded webinar is under 45 minutes, including Q&A with the audience, and well worth the listen.