Misys has released Sophis VALUE v5, its flagship buy-side solution.
The new version offers an increased level of transparency for traditional and alternative asset managers into their operations from pre-trade activity, through portfolio and risk management, to back-office processes.
Investment management firms are searching for new sources of alpha as they face a low-yield environment. Driven by increased volatility in major asset classes and lower expected returns over the long-term, asset managers and their clients need to diversify their portfolios, reduce operational risk, improve compliance with global regulations, expand into new asset classes and geographies while increasing overall operational efficiencies and reducing costs.
Jean-Baptiste Gaudemet, director of Sophis product management at Misys, says: “Regulators and investors are demanding greater transparency in risk management and reporting, while market drivers increase demand for all-weather funds that perform across a variety of investment cycles. Investment management firms need a system that can handle new asset classes at short notice and scale them over time, without placing additional strain on operations and costs. Sophis VALUE v5 offers agility and reliability to allow the buy-side to grow their business with minimum disruption and investment. ”
New and upgraded features in Sophis VALUE v5 include:
· A new user interface (UI) that has been fully redesigned to give portfolio managers a more flexible and intuitive user experience. The tailored dashboard allows each user to build a personalised portfolio view, choosing tools, risk analytics and modules relevant to their role.
· Risk management capabilities with advanced correlated stress testing. Version 5 also includes comprehensive pre- and post-trade compliance management and fully automated analytics such as VaR, tracking error, stress tests and risk reporting for real-time risk management with the integration of equity factor-based models with pricing-based models in order to provide a unified view of risk.
· Support for compliance with derivatives requirements in the Dodd-Frank Act and EMIR regulations, including OMS capacities on OTC derivatives, connectivity to various execution venues, capability to clear new trades and to novate the OTC as part as front to back Straight through Processing. The collateral management module now authorizes cross-asset portfolio initial margining. In addition, asset managers have access to pre-deal workflows allowing them to manage approvals.
· Further expansion of cross-asset and alternative investment coverage, including support for multi-curves, fixed income in emerging markets, exotic interest rate derivatives, investments into fund of hedge funds, as well as fine-tuned equity derivatives, delta one and convertible bonds pricing models.
· A new investment accounting module that is able to support multiple accounting frameworks simultaneously while enabling what-if analysis to assess the pre-trade impact on portfolio accounting in real time. Additionally, the module supports hedge accounting, which also includes hedge efficiency back-testing.
Misys Sophis VALUE is a cross-asset portfolio and risk management system for the buy-side that handles all business processes and workflow from pre-trade to fund administration, encompassing the complete trade lifecycle from portfolio management to risk management and compliance management to middle- and back-office operations. By leveraging STP and automated workflows, investment management firms are able to improve operational efficiency and reduce costs, minimise trading errors and streamline processing and settlements.
More than 90 buy-side firms use Sophis VALUE globally from start-up hedge funds to the world’s largest asset management companies.