invest pro for collective funds

By: Financial Risk Solutions  05/12/2011
Keywords: cash flow

Invest|Pro™ For Collective Funds - A fully automated solution for the fund administration needs of life companies which administer collective unitised funds.

Our software is used by over twenty life companies across Europe to price unitised funds and manage the cash flows between the company’s policy administration system, Invest Pro and investment managers.

Tiered Funds Invest Pro™ enables funds to be managed within a tiered structure

This means that a fund can have holdings in one or more lower level funds. This fund of funds approach is the most efficient way of administering a large number of funds investing into common asset classes. It ensures consistent fund performance between funds with related investment strategies and separates the investment managers from the administration of retail funds.This also allows new retail funds to be launched in very short timescales without the need for seed capital.

Forecast trading and cash flow notifications

Invest Pro™ imports forecast liability units data (or forecast transactions amount/units) from the policy administration system(s). Invest Pro™ has a comprehensive set of algorithms for converting this data into trade instructions in external collectives (in the case of ‘mirror’ funds) or cashfl ow advices (in the case where external fund managers determine stock selection).

These algorithms can take account of:
  • Existing cash balances
  • Deals in the pipeline which have not reached the ‘contract confirmed’ status
  • Offsetting management and tax charge deductions against policyholder cashflows
  • Minimum trade order sizes etc.
  • Min/max cash balances to be held by the fund
  • Box management transactions
  • Fund rebalancing

Unit Matching

Invest Pro™ supports four different approaches to unit matching as follows:

Forecast Matching
In this approach the valuation point of the external fund, T, at which trades are executed is the same valuation point, T, used to calculate the unit price of the internal fund. Units are matched in the internal fund equal in value to the trades placed at the previous valuation point using the unit price of the internal fund based on security prices determined at valuation point T.

Deferred Matching
In this approach units are allocated to policyholders using the price of an internal fund calculated using security prices determined at valuation point T but trades are placed and units matched in the fund (based on the amounts traded) using a valuation point of T+1.

Backdated Matching
In this approach units are allocated to policyholders and units matched in the fund using the price of an internal fund calculated using security prices determined at valuation point T but trades are placed using a valuation point of T+1.

Seeded Matching
In this approach the shareholder box fund buys a block of assets and creates matching asset units at the same valuation point. Subsequent units allocated to policyholders are effected by sales of units from the box fund to the relevant policyholder fund and no external trade takes place. Invest Pro™ imports actual liability units data (or actual transactions units) from the policy administration system(s) on a daily basis. InvestlPro™ then carries out the matching process using one of the above (pre-selected in the database) approaches.


Keywords: cash flow

Contact Financial Risk Solutions

Email - none provided

Print this page


Other products and services from Financial Risk Solutions


Invest | Retail™ - Financial Risk Solutions

Each party type, eg, Independent financial advisors, investment advisors, end clients, head office accounting department etc., can be configured to have different access rights to the Invest Pro™ application.


Key Features - Financial Risk Solutions

Financial services companies use Invest Pro™ to manage all aspects of fund administration with security and efficiency. Invest Pro™ is the key link between the policyholders and the investment markets. Strong controls with full unit pricing reconciliation. Push button solution for unit pricing.


Invest|Pro™ For Collective Funds - Unit Pricing and NAV Calculations

Security prices, corporate actions data and FX rates are taken from market data suppliers and Invest Pro™ uses this data to determine the unit prices of the level one funds. Automated check that the fund value determined from the primary records matches that calculated from the general ledger records. The unit pricing process then operates on a cascade-up approach from the level one funds up to the highest level funds.