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