The 3 Second Rule
If you want harmony, trust the process.
The old way is lost in email, somewhere on the share drive or in the minds of people. There is a new way, a Digital Operating Model where everything you need to know is accessible when you need it.
The complexity of operating an Investment Fund and the speed of change requires a new approach where everything you need to know about your fund is accessible within 3 seconds. "I'll get back to you on that" doesn't work in a digital first economy.
Standard Operating Procedures
Easy to understand processes and controls for every fund deliverable with clearly defined job role responsibilities (including outsource partners).
A library with each Regulatory document for your funds with line by line stakeholder identification and clearly defined Regulatory obligations .
Fund Setup Data
Indexes of the reference data to ensure trading, settlement, accounting, and reporting systems are consistently setup and updated for changes.
A dependency model showing the interconnectedness of all the systems that support your operations with a system object level of detail to help you identify points of failure.
Harmony is timing and co-ordination.
An Investment Fund Digital Operating Model is a collection of Standard Operating Procedures with step by step process-flows.
Each process step is an activity statement supported by functionality to cross reference content, view interdependencies and manage change.
This process centric approach allows you to connect and report resource assignments, upstream and downstream activities, change requests, setup data, system objects and regulatory obligations.
Resource assignments, upstream and downstream processes, change requests, setup data, system objects and regulatory obligations linked to process activities to create a full view of all interdependencies.
Enterprise Change Management
Version control to protect your current operating model with transparency about future and past states. Visual audit trail showing before and after for each process-flow change.
Process activities linked to user feedback, functional specifications, and user stories. User interface and two-way JIRA integration to enable point of use feedback and line of sight between Dev and Ops.
Co-ordinate the timing of IT and Operations changes by packaging Standard Operation Procedures, Functional Specifications and User Stories with System releases.
Easy to follow step by step Process-flows
Each process step consists of an activity statement that is triggered by an input to create an output. Resources are added to identify job role, system and service provide dependencies with RASCI [Responsible, Accountable, Supporting, Consulted, Informed] tagging to provide clarity about individual accountability. Input and output flows connect to form logical and easy to follow Standard Operating Procedures.
Fund Operating Lifecycle
12 Functional Areas
Every Investment Fund is unique.
It has a unique value proposition and characteristics that make it different from every other Investment Fund.
The operating lifecycle of an Investment Fund is mature. Activities are organized into 12 clearly defined functional areas with well established information flows and hand-offs.
Standards are not a one size fits all. It is about recognizing the constants that are shared between all Investment Funds and the variables that make each fund unique.
Setup a Fund
Setup the Fund is about the legal and regulatory work to establish the fund structure, create the investor agreements and achieve regulatory authorization.
Strategy Analysis, Risk Assessment, Order Management, Trade Execution, Front Office Position and P&L Reporting, FX Hedging, Funding and Collateral Management.
Calculate Net Asset Value
General Ledger Setup, Recording of Investment Activity, Security Master, Corporate Actions, Reconciliations, P&L Allocations, Review, Sign-off and NAV Reporting.
The reports, information flows and decisions taken by the Governance Team to ensure they retain ultimate responsibility for the activities of the Investment Fund.
File Financial Statements
The process to draft interim and year end Financial Statements, satisfy audit requirements, publish and file Financial Statements with Statutory bodies.
File Regulatory Returns
Identification of Regulatory Reporting Obligations, the production of reports and the filing of returns with Regulatory authorities in each jurisdiction.
Raise Capital from Investors
Marketing and Distribution of the fund to target investors aligned with offering documents and regulation rules. The record keeping of investors contractual agreements.
Settle Investment Activity
Trade settlement instructions – Listed, FX and Wires, Swaps, Futures and Options. Positions and balances trade / settlement date reporting and break resolution.
Comply with Investment Rules
Setup and monitoring of compliance with Regulatory, Statutory and Contractual obligation. Includes Investment Restrictions monitoring by the Depositary / Trustee.
The Management processes that ensure effective oversight of the operations including processes that have been outsourced to service providers.
File Tax Returns
The production of Fund and Investor Tax reports to comply with local tax reporting requirements and filing returns with Tax authorities in each jurisdiction.
Close the Fund
The liquidating of an Investment Fund to ensure equitable treatment of Investors and Creditors and the filing of all returns required to close a fund.
The Role of Standard Operating Procedures
Standard Operating Procedures play a central roles in Operational Effectiveness by ensuring that every resource at your fund's disposal is optimized and aligned to your needs. Agnostic process-flows that separate the business activity from the resource that performs it are key to future proofing your fund, building operational resilience and enabling change as technology evolves.
Your people to consistently deliver accurate and reliable outcomes for Investors by following your fund's standard operating procedures
Fit for purpose systems based on an objective assessment against clearly defined operational requirements
To Service Providers by providing clarity on what processes have been delegated, expected deliverables and service levels
Connect Governance, Management and Operations Teams with a lifecycle view of your operations to enable collaborative issues resolution.
Secure and Easy to Access
A cloud App with Collaborative Functionality
STANDARD OPERATING PROCEDURES
Easy to follow process-flows for your fund's operating lifecycle
REGULATORY RULES LIBRARY
Library of Regulatory documents linked to process activities
Cloud access for remote teams with a secure access model
Dependency trees to system relationship to ensure operational resilience
FUND SETUP DATA MANAGEMENT
All of your fund's setup data accessible to your teams
ENTERPRISE CHANGE CONTROLS
Project lifecycle management with version controls and audit trial
Context based chat linked to change requests
Configurable Data Tables to capture analytical data with Export to Excel