Asset Servicing

Asset managers have a greater role today. Asset servicing is one of the profitable sectors in a difficult economic environment characterized by stringent regulations, demanding investors, and fierce competition. The evolving landscape is compelling asset managers to revisit their IT strategy in order to reduce operational costs and improve efficiencies. As a result, they have been increasingly adopting outsourcing strategies to achieve these objectives.

The scope of outsourcing has gradually evolved into one that encompasses middle office functions as well as data management services. This offloads asset managers’ time significantly, allowing them to focus on core areas in order to streamline operations, drive growth, and gain competitive advantage. Some of the key IT challenges faced by asset managers include disparate processes and silo-ed data sources that make it difficult to ensure efficient client on-boarding and monetization of new opportunities. Hexaware offers comprehensive asset servicing solutions to help asset managers effortlessly meet new business requirements. Besides supporting traditional asset servicing functions, our client on-boarding framework helps standardize on-boarding processes with well-defined key performance indicators (KPI), service levels, and business processes. We have successfully built and implemented data & analytics solutions and managed data & reporting processes for several industry players, helping them build comprehensive data repositories to enhance data management and deploy efficient analytics functions.

The evolving global financial landscape has forced the asset management industry to revamp its business models and improve client experience through relentless focus on customer satisfaction. Asset management firms typically grapple with several challenges arising from lack of integration between middle and back offices, often leading to poor customer experiences. For instance, straight-through processing is difficult to implement due to multiple interfaces between brokers, customers, and third parties. Increased use of exotic and less-liquid asset classes by the industry adds to process complexity. Asset managers are therefore partnering with end-to-end service providers to enable seamless integration of middle and back office services with the goal of achieving operational efficiencies, increased savings, and superior customer satisfaction.

One of the key enablers of superior customer experience is an efficient client on-boarding process. It also helps the industry meet regulatory requirements and provides the opportunity to expand into newer territories. Hexaware’s services address the key middle office operational challenges faced by the industry as shown in table (Figure 1) below:

Middle office challenges Hexaware’s capabilities
Constraining operating models and the presence of multiple partners limits scalability, governance, and consistent delivery Deliver significant on-boarding capacity with a consistent and seamless global operating model
Ineffective knowledge management due to constant churn in the on-boarding team leads to lack of knowledge retention on tools, processes, and best practices Institutionalize knowledge transition and retention across the on-boarding life cycle
Lack of demand predictability due to high variability in deal volumes and capacity requirements across various work streams and geographies Provide a target state model that enables rapid ramp up/down and effective demand management, while controlling costs
High levels of financial and operational risk due to limited visibility and control Share financial risks as a strategic partner and help mitigate operational risks by ensuring aggressive strategic investments and successful on-boarding

With over a decade’s experience in partnering with leading asset managers, we provide integrated service offerings for a smooth on-boarding experience. These include program, resource, and Meta data management, differentiated pricing model, Business Process Management (BPM) modelling for business analysis, data exchange, client reporting migration service, analytics for asset management, and User Acceptance Testing (UAT) regression suite.

Global financial institutions are under enormous pressure to make better business decisions within shorter time frames. They are challenged to produce high quality results with minimal risks and errors. However, the poor quality of information available and its unstructured format impairs decision making, creating inefficiencies and compliance challenges in-turn. To overcome these challenges, and achieve a positive return on investment (ROI) at minimal risk and cost, financial institutions need to structure their data by embracing technological innovations.

Hexaware offers end-to-end investment data management solutions that address the clients’ requirements and enable them to overcome challenges.

Our solutions leverage a mix of innovative technology and deep domain expertise in the following Market Data Feeds (MDF) across asset classes:

  • Security
  • Intraday and end-of-day pricing
  • Corporate action and analytics
  • Client data
  • Reconciliation
  • Portfolio, trade, compliance, and regulatory reporting
  • Big Data management

Hexaware delivers state-of-the-art solutions (as shown in Figure 1) that help our clients manage their data across front, middle, and back office operations.

Figure 2: State of art solutions for managing Front, Middle and Back office Operations

Front Office Middle Office Back Office
  • Real-time pricing data
  • Security data
  • Trade data
  • Pre-trade analytics
  • Portfolio management
  • Risk and investment analysis
  • Trade confirmation
  • Trade enrichment
  • Regulatory and non-regulatory compliance
  • Risk analytics
  • Trade monitoring and reporting
  • Clearing and settlement operations
  • Corporate Actions and News Analysis
  • Reconciliation
  • Fund accounting
  • Valuation
  • General ledger processing
  • Reporting
  • Performance, analytics, benchmarking and contribution
  • Market data feeds
  • Reference data management

Figure 3: Hexaware’s Investment Data Management Service Offerings

Master Data Management (MDM) Solutions Managing Data Needs of Business Solutions Data Consolidation
  • Interfaces to market data providers like Bloomberg, Reuters, Telekurs, Markit, IDC, S&P for security, and intraday and end-of-day pricing data
  • Validation, normalization and enrichment
  • Trade Data
  • Vendor hierarchy rules management
  • Golden copy and best-of-breed data
  • Risk management
  • Client reporting
  • Performance measurement and attribution
  • Front office systems (order management and portfolio management)
  • Accounting systems
  • Dimensional model
  • Data warehousing/mart
  • Structure and unstructured data (Big Data)
  • Historical and time-series data
Data Quality Assessment and Implementation of Data Quality Products Business and Technology Architecture Consulting and Assessment (BPM) Implementation of Metadata Data Modeling
  • Proprietary tools and frameworks
  • Industry-standard products
  • Current state analysis
  • Future state definition
  • Business modeling
  • Technology and process metadata
  • Proprietary solutions combined with industry-standard products
Third Party Product Implementations
  • Reference data solutions
    • Eagle PACE
    • GoldenSource
  • MDM products
    • Informatica MDM

Platform Consolidations

Hexaware’s proprietary tools accelerate and improve process efficiency, while reducing implementation efforts by at least 20%.

Figure 4: Hexaware’s offering framework

Hexaware Proprietary/ Framework Tools Features
Data Dictionary and Data Dictionary and Metadata summit for investment business information, data dictionary
Transactional reconciliation process for identifying matches, mismatches and discrepant data
BI environment metadata foundation tool that creates semantic layers such as universes and models
XML-based query engine for a data integration environment. It ensures Extract, Transform and Load (ETL) coding standards and locates coding errors
Metadata-based analysis tool for any BI environment to identify duplicate reports, dead variables and subset-related reports
Toolkit that delivers a scalable, flexible and integrated data model. It improves quality and time to market for implementing dashboard, reports and analytics

Contact us to learn more about Hexaware’s investment data management service offerings

Managed Reporting

Regulatory requirements and clients demands are changing rapidly in the evolving investment management landscape. Therefore, portfolio and asset managers must have access to timely and accurate data, which in turn drives the demand for an improved IT infrastructure and enhanced operational efficiency.

Top 3 Analytics Demands of Asset Managers

The Demand

What does the demand refer to?

Why does the demand arise?

How can the demand be met?

Get Smarter

Smarter risk management (especially for discretionary matches)

Investor demand for increased  transparency

Granular-level performance attribution reporting which is tied to risk data that is tailored to the clients’ needs

Renewed emphasis on risk data due to the introduction of alternative assets

Risk data on a broader set of assets, combined with more sophisticated analytics

Trade Smarter

Smarter and better trading

Search for Alpha

New data infrastructure to enable portfolio managers extract investible insights from data

Real-time focus

Increased focus on real-time data from markets, which is tied to internal data, enabling the traders to take faster trading decisions in the electronic and algorithmic trading world

Sell Smarter

Improved sales intelligence

Cross-sell and up-sell requirements

Offer fact-based investible insights to the client

Leveraging its deep expertise in enterprise data management, Hexaware offers a high-end cloud-based managed services package, that help customer’s jumpstart the development of their performance analytics model and provide operational and maintenance support.

Key features of Hexaware’s reporting solutions include:

  • Scalable, flexible, integrated data models
  • Reduce redundancy, cost, and manual workarounds
  • Improve quality and time to market for implementing dashboards, reports, and analytics information
  • Resolve traditional data warehouse problems and enable a quicker and easier access to business data
  • Ensure availability of high-quality dimensional data and corresponding hierarchies for dashboards and reports.

Hexaware’s Analytics and Reporting Services: Client Benefits

Reporting Optimization

Leveraging its proprietary analysis methodology, Hexaware significantly optimizes the reporting landscape by:

  • eliminating non-value adding activities in report production and consumption
  • removing duplicate or redundant reports

Quick Implementation

Using prebuilt and ad hoc IP addresses, Hexaware reduces the implementation time by almost 40% compared to standard alternative solutions.

Cost Reduction

Hexaware provides standardized and integrated platforms which reduce implementation costs by 50% compared to the standard alternatives.

Safeguarding of Client IP Addresses

Hexaware employs a hybrid on-premises/cloud model to segregate client IPs according to the security levels required to maintain a high level of security for proprietary IPs.

Access to the Latest Technologies

Leveraging strong vendor partnerships, Hexaware enables clients to access emerging technologies including social media, mobility, noSQL, data bus, and open APIs.

Hexaware’s Proprietary Tools

Hexaware’s solutions are platform agnostic and work seamlessly with client and third-party platforms. We employ proprietary methodologies, besides leveraging partnerships and tools to support analytics and reporting implementations and create tangible value for the customer.

Hexaware’s Proprietary Tools

Belva

Data dictionary that provides a 360° view of metadata

Verzoenen

Light-weight reconciliation tool

Data integration Analysis and Review Tool (DART)

Automated extract, transform, and load (ETL) code review tool to ensure coding standards across developers. It speeds up the review process by almost 90% and identifies coding errors missed out in manual checks

Business Intelligence Metadata Analyzer (BIMA)

Metadata tool for BI environments, reduces the effort of analyzing existing environments by up to 4%

Analytics for Investment Management (AIM)

Dimensional data model for key investment management decisions

WQ Integration Manager (WQIM)

Mobile Backend as a Service (MBaaS) platform to:

  • Build mobile applications that offer a rich user experience
  • Get a secured access to line-of-business (lob) applications
  • Abstract mobile device specific nuances

Salient Features

  • Product-agnostic analytical tools
  • Hybrid cloud model
  • Multidimensional data model
  • 360º portfolio, trade, performance, risk and sales view
  • In-memory analytics, dash boarding and self-service reporting for providing accurate data
  • Multiple distribution channels, for example, web and mobile
  • Adaptable to standard products such as Eagle PACE and Salesforce
  • Predictive and customized model development
  • Ready-to-use modules such as Portfolio, Assets under Management, Trade and Broker Analytics, Performance, Risk, and Sales and Marketing
  • Operational and maintenance support

Value Added

  • 40% faster implementation and 50% savings on cost of key components compared to standard alternatives
  • Hybrid model (on-premise and cloud)
  • Social, Mobile, Analytics and Cloud (SMAC) based technology
  • Integrated managed services