May 20, 2020 | Case Studies

Institutional Manager boosts portfolio agility and implements seamless trade execution

Undergoing technological change is not something to be taken lightly in ordinary market environments, much less during a time of extreme or abnormal market volatility.

  • Ease of use
  • Customizable workflows for users
  • Extensive client/marketplace connectivity.
  • Data migration (and how easy it is to implement), support model, modularity and future expandability.

Long Time Taken to Implement Trade Ideas

The amount of time it took the manager to implement and construct their portfolios hamstrung their ability to capture their alpha. Internal studies documented that the longer they took to implement an investment thesis, the less their ability to take advantage of potential returns. It often took them more than a day to implement trade ideas. By then, market conditions may have deteriorated to the point that it would be unwise to implement their trade ideas. Enfusion’s integrated OEMS made it possible for the client to quickly implement and construct portfolios on a timely basis, saving them several hours a day to enhance productivity that generates real returns.

Inaccurate Start of Day Positions

New client mandates or allocations also resulted in new strategies. In order for their PMs to do this, they would want to frequently trade instruments in high volumes. This was an impossible task due to the nature of their systems and processes. It was difficult to trade specific instruments in a straight-through manner without manual intervention. Not having accurate start of day positions prevented accurate portfolio risk management. The ability of Enfusion to quickly customize trading workflows for derivative instruments was a big value-add to the client. Enfusion’s APIs also added a level of straight through processing, from the research function down to trade execution, that the client had not had access to previously.

Constant Booking & Pricing Problems

Constant booking and pricing problems with their derivatives books also posed insurmountable. The asset manager only had a minimal set of daily reconciliations therefore start of day holdings were rarely clean and reconciled. By using Enfusion Services for end of day reconciliations, they were able to provide the client with accurate, reconciled data that would reflect accurate start of day holdings the next day. Without having to worry about daily portfolio breaks, the PMs now had time to work on their strategies and can be confident that their portfolios were clean and accurate.

Enfusion Provides Customization and Connectivity

Enfusion’s all-in-one solution was recognized by the client as a huge relief of their having to integrate yet another vendor into their technology stack. The prominent benefits include spearheading operations, back office and front office users onboarded and using the software as quickly as possible.

Ease of Customization

Enfusion offers weekly product enhancements and upgrades notified directly to your inbox. Through this implementation, we agreed on developing specific functionalities for our client firm that would position them well for the fast-moving OEMS marketplace. We achieved the right balance of customization and the notion of a standard offering. Our Managed Services team also helped with reconciliations with in-house functionality and enabled the OMS implementation to be as seamless as possible.

Client/Marketplace Connectivity

Multi-strategy funds need to trade a wide breadth of products across different asset classes and venues. Enfusion enables their workflow with pre-packaged existing API connectivity to brokers, venues and marketplaces allowing new trading venues and brokers connected easily.

Enfusion Partnership with Finserv

 Enfusion partnered hand-in-hand with the Finserv team to implement the OEMS for the client. This provided the asset manager with better control service levels and more importantly, they would be able to custom develop functionality that matched their business needs.

Enfusion has been the ideal partner. They are professional, flexible, and supportive of our efforts. Together, we have been able to create and output innovative solutions to surpass our client’s high expectations.

Lee Schare, Partner at FinServ

Expert Managed Services Team

After a protracted selection period, the asset manager chose Enfusion Systems. Enfusion was able to make their choice easy due to their cloud-based solution, which provides integrated order and execution management as well as middle office and IBOR services. The asset manager also outsourced part of their back office to Enfusion’s Services team.

Multi-asset Strategies Powered Across OMS and Back Office by Enfusion

Using one vendor for both OMS and back office was one of the key drivers behind their decision. In addition, having a single data model also provided a golden copy for data for all users across all functions. Since the asset manager’s business model was multi-asset, multi-strategy and made use of heavy derivatives, Enfusion’s ability to handle multiple asset classes also made sense.

Expanding the Relationship

Due to the success of the multi-asset strategy implementation, Enfusion is excited to collaborate side-by-side with FinServ and further develop our partnership for other client firms in the future.

Enfusion and FinServ worked side-by-side during this project – we ran implementations, gathered clients’ requirements and dived deep into the use cases. Both parties were truly collaborative, and this enabled accountability with the client. FinServ has tremendous project management experience and it was great partnering with them.

Brad Flax, VP of Business Development at Enfusion

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