Data Central for Third-Party ManCos

Business Case Study
Part I

The Client

Type of company

A well-established third-party ManCo, part of a big international financial group

company SIZE

500-1,000 people
(50-100 of whom in the Luxembourg office)

Assets under management

> €2 billion

Part II

The Client’s Situation

Fund Data
Coming in

The ManCo was already serving many clients and they were continuing to grow in numbers. As with any other ManCo, the company worked with the fund administrators appointed by their clients and these were diverse. As a result, it was dealing with fund data coming from 7 different fund accounting companies, each using its own file format. There was no common layout.

Resources
Inefficiencies

The lack of a unified file format contributed to the ManCo appointing highly valuable professionals to perform no value-adding tasks like handling the incoming data on a daily basis. They needed to make sure all data from all providers is received, aggregated, checked, and reported accordingly. This cost the company too much in terms of time, human capital, and resources.

Operational
Challenges

Due to the increasing number of clients and its commitment to excellence in serving them, the ManCo started to face challenges in diligently processing all the data manually. Thoroughness required a lot of time, dedication, and attention. The quantity of work became overwhelming. The ManCo started to look for ways to enhance its Risk Management and related data processing function.

An Attempt
of Their Own

The ManCo knew that a sensible approach to data processing automation was necessary. The company’s first attempt was buying a ready-made third-party system and employing software developers to customize it to fit their specific needs and requirements, but to no avail. They needed a solution that adapts to their situation, not the other way around.

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Part III

April Software Steps In

The ManCo turned to an established consulting company to help them perfect their Risk Management process. That company suggested that the employment of a smart data management tool might be necessary to get the desired results quickly and efficiently. So, they introduced April Software and our Data Central product to them.

During our demo, the ManCo representatives personally saw how all the data files that come in every day from the 7 different administrators would be processed automatically, validating and storing all data into one hub and making it available in a single coherent format. The demonstration hit home – it was exactly what the ManCo professionals needed to achieve their goals and effectively meet the growing demand for their services.

By the end of the demo the ManCo’s Risk Manager was already convinced and decided to go with the consultancy company’s proposal empowered by Data Central, realizing he would have made a mistake had he gone with another solution they were also considering at the time.

Part IV

Implementation

Contrary to all expectations, April Software’s team was able to fully implement the solution in under 3 months. The tool successfully integrated with all 7 fund administrators’ systems and started extracting all the data autonomously.

In addition to what Data Central was delivering, April Software built a dedicated Risk Management Data Central Module that enabled the consulting company to compute specific risk measures for their client that their current risk management system was not covering. These risk measures are particularly required by the regulator in the context of a management company and are specific to Luxembourg, the European market, and the fund industry in particular.

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For the other risk measures, Data Central automatically pushes the data into the risk management system and collects it back after computations, so that reports can be produced quickly and efficiently. With the adoption of Data Central and the outstanding support by their consultancy company in the computation and validation of their Risk Management figures and reports, now the ManCo was able to even surpass their clients’ expectations for quality services and continue to grow.

Part V

Results

After implementing Data Central the ManCo was able to achieve:

  • > Incredible efficiencies
  • > Cost savings
  • > Time savings
  • > Employee optimization
  • > Focus on core competencies
  • > Effective organization of procedures
  • > Professionals delivering more and better outcomes
  • > Better time allocation
  • > Performance of more value-adding tasks

In result, the ManCo’s Assets under Management grew with more than 20%!

Adding more fund administrators, aggregately dealing with data for 60 sub-funds, further proves the client’s growth, development, and ability to scale the business to welcome more clients and provide the same top level of service.

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