thinkFolio Proof Of Concept implementation

Background:

thinkFolio was selected as the tool to support one of our client's Portfolio Management and Order Management operational processes.

As a result of the successful implementation of this project, the tool had also been targeted as the solution for operational processes in another business unit within the client’s organisation. To ensure that the thinkFolio tool could support the requirements of this second business unit, the business sponsors requested a Proof of Concept be undertaken.

The objectives of the POC were to prove that the product could deliver the specific requirements of their Portfolio Management, Order management and Dealing functions across their currently active set of traded instrument types.

Reformis Solution

The role of Reformis was to provide project delivery experience, business analysis subject matter experts, technical architecture and product implementation specialists to the client, and to manage the POC to its conclusion.

Our business analysts arranged workshops with the key users and business sponsors, gathered and documented their requirements formally and arranged for business sign off.

The technical architect was responsible for reviewing the architecture of the clients IT platforms and mapping this to the architecture required by the thinkFolio product. An implementation plan to address the gap between the two was produced as a result of this exercise and its delivery was the responsibility of the Reformis architect. The Reformis product implementation specialist then configured and developed the product to the business requirement.

The business case for the project was continually reviewed by the Reformis project manager and its ongoing status reported back to the business executive sponsor. The delivery of the business solution and the technical implementation plan was also managed by our project manager. The acceptance criteria set at the outset of the project against the key requirements, as described in the next section, was also continually assessed by the business sponsors to see how well the product delivered the requirement and therefore the relevancy of the product to the client environment.

Our brief was to manage the implementation of the proof of concept so that it demonstrated thinkFolio’s capability to deliver the following business requirements:

Portfolio Management Information and modelling capabilities

  • Portfolio “slice and dice” by key portfolio, instrument and position attributes
  • Portfolio “slice and dice” by strategy/theme
  • What if analysis for Portfolio hierarchy modelling
  • Ad-hoc data extraction and integration with MS-Office

Risk and Performance Reporting

  • Analytics reporting
  • Fund and trade performance information

Benchmark Management

  • Benchmark management – carve-outs, blended benchmarks and sector level benchmarks
  • Functionality for manually changing the benchmark or loading changes to a benchmark

Position Management

  • Asset class position reporting
  • Position valuation methodology for each asset class

Workflow capabilities

  • Order generation and workflow for each asset class
  • Pre-trade compliance workflow
  • Workflow for creating new derivative instruments
  • Multi-role workflow for the fund management and trading lifecycle

Cash Management

  • Futures and foreign exchange rollover functionality
  • Cash forecasting

Intelligent Rebalancing

  • Portfolio hierarchy and look-through
  • Portfolio hierarchy rebalancing capabilities in line with benchmarks
  • Real-time pricing data and scheme valuations to support portfolio rebalancing
  • Real-time currency pricing and exposure valuation to support currency rebalancing
  • Real-time rebalancing/cash exposure status from downstream trading activity

Medium Term and Tactical Asset Allocation Requirements

  • Real-time pricing data and portfolio valuation (profit and loss)
  • Pre-trade and disaster scenario “What if” analysis and impact to Volatility, Exposures, Greeks and VaR
  • Strategy/Theme tagging per trade

Order Management

  • End user ownership of blotter configurability and flexibility
  • Order management workflow
  • External trade connectivity integration (e.g. FIX execution)
  • Integration to leading third party vendor products
  • Integration of OTC Trade Affirmation utilities
  • Application of commission and historical commission analytics
  • Trade allocation functionality for each asset class

Compliance

  • Pre and Post Trade Scheme level compliance rules application

IT requirements

  • Auditing capabilities – order initiation, pre trade compliance, order execution, post trade compliance
  • Archiving and historical data retrieval flexibility

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