According to PwC’s Observatory for Management Companies, there were more than 300 ManCos in Luxembourg with a UCITS or AIFM license or both in 2019. Their number continues to grow together with the Assets under Management they are responsible for. All of this is great news for Luxembourg as it continues to enhance its stance as a leading financial center in Europe and the world. However, it also means that competition among ManCos is continuing to grow as well, making it ever more difficult for one to stand apart from the crowd. Top-level executives have the responsibility and challenge to find creative and effective ways to innovate and optimize operations to stay competitive and attract more business. In the following article we’ll take a look at how a third-party ManCo managed to accomplish that task by elevating its data handling and risk management functions.
A Third-Party ManCo Data Handling and Risk Management Optimization Case
About the Third-Party ManCo
The third-party ManCo in our business case study is a well-established entity, part of an international financial group. The Luxembourg office of the company employs more than 50 people and manages more than €2 billion of assets.
Being a well-known figure within Luxemburg’s fund industry players, the company was enjoying a steady pool of clients, which was getting bigger and more diversified. Hence, the number of fund administrators this third-party ManCo was working with was increasing as well. Unfortunately, each one of them used its own file format to send in the fund data to the firm. There was no way in which the company could ask all fund administrators to use the same template, simply because there is no one single standard for it. As a result, the ManCo found itself receiving 7 different file formats every day. Its highly valuable professionals had to spend hours aggregating all the data, checking it, reconciling it, and making it usable for the company.
This, combined with the increasing number of clients and the firm’s commitment to excellence in serving them all, was starting to challenge and overwhelm employees. They really wanted to keep their thoroughness and dedication to high-quality work, but the sheer volume was getting stressful. This pushed management to find new ways to enhance their Risk Management and related data processing function.
The Consultant’s Expert Opinion
The third-party ManCo in question sought the expert advice of a famous consultancy company. They were told that simplifying and perfecting their Risk Management process was, indeed, achievable. It would only take the consultancy’s creative and time-tested approach in combination with a smart NextGen data management technology. In a nutshell, this is how April Software’s Data Central tool made its appearance before the third-party ManCo. The rest, as they say, is history.
A Demo to Remember
Within the short time it took for April Software to demonstrate the technology’s capabilities, the Risk Manager of the third-party ManCo got convinced this was exactly what they needed. He witnessed how all the data coming in 7 formats every day will turn into a single, coherent data set. The options of how to use it afterwards for reporting, computations, and insight were limitless. The executive was quick to understand how this will strengthen his company’s performance. Moreover, it would allow it to effectively meet the growing demand for their services.
Implementation and Results
April Software integrated Data Central with the third-party ManCo and its fund administrators in less than 3 months. Additionally, we built a dedicated Risk Management Module that enabled the computation of additional risk measures not covered previously. What were these and why were they important? What results did the ManCo achieve after these simple innovations? Click on the “Read More” button below to view the full story and its happy ending.
If this situation sounds familiar for your regular or third-party ManCo, then maybe it’s time for you to contact us. Our team has the ability to understand your business and operational goals in depth. Then, we translate them into actionable and results-delivering NextGen technological solutions.