Mcube Investment Technologies has signed the first consulting client for its AlphaEngine software solution, Dutch firm Avida International.
Avida International is a consulting firm focused on strategic and organizational redesign of asset management organizations and institutional investors. This is particularly relevant to pension funds facing more stringent requirements on the manner in which their asset management activities are organised. Avida has a special focus on implementing an effective fiduciary management framework including assistance with in- and out-sourcing decisions, the related design of the internal investment organisation and external manager selection.
Mcube's AlphaEngine is a web-based software solution that helps make all portfolio decisions using an intuitive, rule-based approach. Current clients include sophisticated pension funds, endowments, asset managers, and fund-of-hedge funds to evaluate a broad range of investment strategies for any asset class or groups of external managers and use these strategies to guide ongoing portfolio decisions.
With AlphaEngine consultants can customize analyses to their client's specific objectives, portfolio structure, and policy constraints. The benefit is that advice can be provided in a customized and holistic portfolio context to help generate higher returns, better governance through transparency in decision-making, effective risk management relative to liabilities, and cost savings.
'I am delighted with this alliance and observe an enormous need for our services,' says Paul Boerboom, CEO, Avida International. 'Mcube's sound quantitative approach is a perfect complement to Avida's unique experience to address people, organization and investment process issues. This is a strong combination.'
Arun Muralidhar, Chairman and Head of Research of Mcube Investment Technologies adds, 'We are honored to have Avida International as our first consulting client, having worked with them on a previous engagement. They join an impressive list of global clients, including some of the most sophisticated pension funds, fiduciary management companies and asset management operations, who are interested in moving towards implementing Smart Beta and Alpha Management.
'Having managed pension funds, they immediately understood the AlphaEngineTM value proposition, especially in the context of offering consulting services and evaluating the appropriate fiduciary management structure for funds. While many providers focus on just manager selection, Avida realized the value of understanding the entire investment structure. Now, through our partnership with Avida in the Nethelands, smaller funds with limited internal resources will be able to improve their governance to the level of the largest, best staffed plans.'
Background notes: Mcube Investment Technologies LLC, a US company headquartered in Plano, Texas, is a leading developer and provider of decision support products for institutional investment management. Mcube has a strategic alliance with ORTEC Consultants, in the Netherlands, thereby further broadening the product offering to best-of-breed products in asset-liability management, performance attribution, index tracking and risk modelling. It services a global client base with clients located in Europe, the Middle East and North America.