Netik LLC, the data warehouse company, has launched a new fund of hedge funds application for the alternative securities market.
Leveraging the Netik InterView Investment Hub platform, the fund of funds application has been engineered to simplify the hitherto complex process of managing and administering portfolios of hedge funds. The application fully manages the flow of fund data across the entire spectrum of investment operations and supports the money management role as well as investor services roles such as fund administrators and prime brokers.
Like the rest of the Netik InterView Investment Hub product suite, the Fund of Funds application makes full use of Netik's 'Information Portal' and 'Data Portal.' The Information Portal allows users to manage 'content' and to access their most current fund investment information over the web helping them to select and manage their portfolios. Such information content includes fund facts sheets, performance summaries, manager reports and fund prospectuses. The Data Portal then provides all the workflow technology necessary for automating the process for submitting subscriptions, redemptions and transfers ensuring that these are uploaded to back-end systems both within and outside the enterprise. In this way, Netik's Fund of Funds application acts as the crucial link between investment managers, administrators and transfer agents.
John Wise, Netik's CEO, said: "Netik's Fund of Funds application has been designed for several of our customers who are leaders in the alternative investment space. The primary goal was to enable investor services providers to enhance their value-added offerings to their customers and to automate, what is up until now, a very manual and complicated process."
"If a fund manager makes an investment in underlying sub-funds," explains Wise, "they have to complete the subscription forms, send them to the administrators, and then wire the money. The administrator then has to maintain on-going communication with the transfer agent. All of this includes multiple validation events for each transaction throughout its lifecycle in an extremely time-critical environment at month end."
"For example," Wise points out, "Investors must have the correct subscription documents and money on the last business day of the month. If this process is missed, delayed, or bungled, the opportunity is gone, as many funds do not have subscription periods till the next month end."
Netik's Fund of Funds application provides investor services providers with tailored workflows, processes and controls to facilitate this transaction processing. If a fund manager wants to make an investment in a new fund, but does not have the redemption money out of another fund, or if the subscription exceeds a deadline, an exception/email alert can be sent to the account manager, notifying them of this event. Exception processing workflow rules such as these are tailored for each client.
Netik's Fund of Funds application has recently been launched and is live with one of the leading global fund administrators. In addition to transaction lifecycle management, the product allows users to create and maintain funds at the fund, class, sub-class, and series level, as well as contact details for all parties of interest.
This application also includes electronic document management for maintaining Prospectus, Dealing forms for subscriptions and redemptions, Financial Statements, and Fact Sheets.
"The fund administrator plays a central role in delivering data accurately and efficiently to the managers and his clients and driving the whole operation forward" states Wise. "As more institutional money is invested into fund of hedge fund products, the frequency of reporting is moving to weekly, and even daily."
The Netik InterView Investment Hub and the new Fund of Funds application provide multi-channel information distribution, which includes online access inquiry, scheduled reporting, and electronically scheduled delivery of reports or data in various formats via email, or FTP.
Combining the Fund of Funds application with other Netik InterView Investment Hub components, investor services providers are equipped with a powerful solution that includes Global Performance Measurement and Attribution, Compliance Monitoring, and sophisticated multi-way reconciliation.
Background Note: Netik is a provider of data warehouses and investment hubs for the securities industry. Netik's information-centric data management and reporting solutions are based upon a uniquely powerful data model that has been engineered to sit at the heart of Investment Operations and supports Institutional Asset Managers, Wealth Managers, Private Bankers, Fund Administrators, Prime Brokers, Custodians and Investment Operations Outsourcing providers. Netik's proposition solves the perennial problem of how to handle financial data from increasing numbers of sources, rationalise, transform and reconcile it, and accurately route, store and warehouse it so that it can be leveraged as information for front-line business decisions.