ALTERNATIVE INVESTMENTS MANAGER

Transcription

1 ALTERNATIVE INVESTMENTS MANAGER ENABLING ALTERNATIVE ASSETS IN SIMCORP DIMENSION ROSS LEBLANC, SENIOR PRODUCT OWNER FOR ALTERNATIVE INVESTMENTS, SIMCORP SIMCORP RELEASE SEMINAR - VIENNA

2 WHAT ARE ALTERNATIVES? 2

3 LONG TERM INSTITUTIONAL INVESTOR PLANS INCREASE VS DECREASE ALLOCATION PRIVATE EQUITY +49% PRIVATE DEBT INFRASTRUCTURE +52% +51% REAL ESTATE +21% VENTURE CAPITAL +10% -8% NATURAL RESOURCES -6% HEDGE FUNDS Source: Preqin 2018 Investor Outlook 3

4 OPERATIONAL INEFFICIENCY 62% Source: Operations as a Competitive Advantage for the Buy Side, 2018 InvestOps Survey 4

5 BEST OF BREED SYSTEMS VS. EXCEL DEPENDENCY 5

6 ALTERNATIVE INVESTMENTS - CHALLENGES Data Analytics and data specifics Lack of data standardization Cross assets data consolidation Processes Excel contagion Lack of automation Frequency of events Organization Siloed prestigious teams Costly legacy systems outgrown Interfacing 6

7 TECHNOLOGY AND AI 7

8 THE ALTERNATIVE INVESTMENTS SOFTWARE MARKET More than 30 Solution Providers More than 30% of players are less than 6 years old Most actors have equipped themselves in the past 10 years Over 30 Mergers/acquisition over the past 7 years New best of breed Innovative solutions for underserved processes Hedge Fund and Real Estate more mature asset classes 8

9 SIMCORP DIMENSION 9

10 SIMCORP DIMENSION WHERE DO WE FIT IN? Front office / Portfolio managers Middle office & Back office 10

11 ALTERNATIVE INVESTMENTS IN A NUTSHELL SIMCORP STRATEGY AI made one of the top 5 strategic initiatives One IBOR & ABOR for all asset classes Front-to-back portfolio coverage Best practices out-of-the-box Compatibility with existing functionalities Initial focus on Limited Partners CLIENT BENEFITS Better support of a growing asset class Real-time cross-asset view AI Front Office users in SimCorp Dimension Reduce Excel footprint Reduce implementation effort Simplified system architecture 11

12 DEVELOPMENT PARTNERSHIP AGILE METHODOLOGY Workshops Designing Planning sessions Prioritizing Demos Reviewing and testing 1 sprint = 2 weeks, planning every 12 weeks 12

13 A DEDICATED ORGANIZATION Jon Irgens Product Portfolio Manager Catherine Le Caranta Product Owner Hugues Chabanis Product Manager Jan Aarre Midtgaard Product Owner 40+ years Alternative software expertise 30 agile members 250+ years SimCorp Dimension expertise Ross Leblanc Product Owner 13

14 ALTERNATIVE INVESTMENTS MANAGER ONE CENTRALIZED EXPERIENCE FOR ALTERNATIVE INVESTMENTS 6.3 Front and Back-office friendly 360 degrees data access (positions, transactions, securities, static data) Real-time calculations New asset entities (Fund, company, etc.) Shortcuts to create transactions Configurable charts and pivot grids 14

15 DEMO 15

16 PRODUCT DEMO (7 MIN) 16

17 ROADMAP 17

18 AI MANAGER SCOPE Fund Investments Direct investments Custom asset Store static data for the fund Store underlying assets (portfolio companies) Perform look through / decomposition Store static data for the company Set of analysis pages for investors transactions instruments Store static and customized data Process all cashflows and accounting Calculation In 6.3, we are covering the core of the most wanted topics: Reduce Excel footprint Dashboards/Analytics Cashflow accuracy Middle and back-office AI Manager Balance and performance Customizable balances Dynamic pivots and grouping Create and display charts and grids Improved and simplified AI cashflows Leverage traditional instruments for direct investments Pivot and chart analysis Configurable landing page Standard configuration 18

19 ROADMAP Alternative Investments Manager Assets Data model Core Transactions booking Decomposition-Lookthrough 6.3 Calculation engine Real Estate Best of breed KPI tracking Cashflow Forecasting Data Collection Strategic client driven development * Internal trade Data Service Partnerships Amortization 2.0 Private debt funds Cons.+ Differed P&L + Lots 19

20 MAIN FEATURES ROADMAP AI manager Calculation engine Data model Transaction booking Configurable Layout Calculation engine grid Charting capabilities Standard Widgets(Investors, portfolio, positions, transaction, instruments) Standard Basic Analytics Custom Analytics YTD and ITD Calculation Standard performance Analytics Standard grouping cap Asset Entity creation Company Basic datamodel Fund Basic datamodel Standard data Widgets FlexForms AI basic transactions Improve AI instrument Flex event revamp with Cost /Taxes Equity commitment Partly paid Equity ABOR Distribution P&L calc PreTrade analytics Equity, Bonds, Call Money & AI instruments Enhanced graphical capabilities Enhanced usability Standard Advanced Analytics Custom Performance analytics Analytics auditability v1 Assets advanced datamodel Real Estate/Property Basic datamodel IBOR Support of standard private debt AI advanced transactions Secondary investments Post trade Analytics Analytics auditability v2 Dynamic period calculation KPI Tracking Real Estate/Property Advanced datamodel ABOR AI Internal trade ABOR AI Amortization and Accruals AI Decomposition Datastructure Process flow Lookthrough Widgets 20

21 DETAILED FEATURES PRODUCT PREVIEW 21

22 NEW ASSET ENTITY ADDITION OF A NEW ENTITY TYPE, THE ASSET 6.3 Fund Standard Datamodel Company Standard Datamodel Asset positions viewer Asset transactions viewer Customizable Fields Customizable Screen with dashboards 22

23 AI LOOK-THROUGH / DECOMPOSITION INTRODUCING DAILY LOOK-THROUGH EXPOSURE 6.5 Period end Dec 31 Jan 23 Capital call Annual report received Feb 15 xwhat is our exposure? Period end March 31 Time Daily cashflow adjusted exposure calculation 23

24 DETAILED FEATURES LOOKING AHEAD 24

25 KEY PERFORMANCE INDICATOR TRACKING KPI DEFINITION A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively an Asset is achieving key business objectives. Organizations use KPIs to evaluate their success at reaching targets. Tracking Financial and Non-Financial Indicators: Funds ex. ESG ratings, compliance, scorecards Companies ex. Sales, EBITDA, Production, Commentary Real Estate ex. Occupancy Rates, NOI, BV by Market, Total rentable square footage leased by business unit Infrastructure ex. Land Contamination, Energy Use, Fatalities ESG (SRI, RI) ex. Employee turnover, GHG Emissions, Gender diversity %, Political Risk Open to Partners

26 REAL ESTATE/PROPERTY INVESTMENTS Open to Partners Standard data structure (lease, units, tenants, etc.) Standard KPI tracking (NOI, DSCR, occupancy, etc.) Expense/income amortization & accruals (Development Partners candidates needed) 26

27 LONGER TERM ROADMAP ITEMS Open to Partners CashFlow Forecasting Data collection LP Third party data Capital call notices Quarterly reports Trial balances Rent Rolls Fund raising Web Portal Data service IA OCR (e.g. IBM Watson) How to forecast Drawdown and Distributions? Custodian GP Property Manager Portfolio Company How to interact with GPs? 27

28 SUMMARY 28

29 SUMMARY ONE SYSTEM FOR A COMPLEX WORLD Alternative Investments Manager supports core LP processes 3 Development Partners Strong commitment from SimCorp 29

30 WANT TO KNOW MORE? Ross LeBlanc Senior Product Owner, Alternative Investments SimCorp London 100 Wood Street EC2V 7AN London United Kingdom CONTACT ME Tel:

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32 LEGAL DISCLAIMER The contents of this presentation are for general information and illustrative purposes only and are used at the reader s own risk. SimCorp uses all reasonable endeavors to ensure the accuracy of the information. However, SimCorp does not guarantee or warrant the accuracy, completeness, factual correctness, or reliability of any information in this publication and does not accept liability for errors, omissions, inaccuracies, or typographical errors. The views and opinions expressed in this publication are not necessarily those of SimCorp SimCorp A/S. All rights reserved. Without limiting rights under copyright, no part of this document may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form, by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose without the express written permission of SimCorp A/S