2013 focused on sharing, compliance and StatPro R+ development.
Development has been driven by two strategic themes:
As detailed previously, 2013 focused on UCITS (for mutual funds) and AIFMD (the equivalent for hedge funds). Therefore, StatPro Revolution development was dedicated to the integrated compliance solution enabling our clients to tackle the increased regulatory pressure they must adhere to. The new feature covers three key aspects:
• UCITS IV Global Exposure: regulating the risk limits that a fund is permitted to undertake;
• AIFMD Commitment Calculation: limits on the leverage a hedge fund is allowed to take; and
• UCITS IV Investment Restrictions: integrating the above two with compliance tools.
During 2013, StatPro invested in the social aspect of StatPro Revolution, with the aim of increasing the distribution and usage of the product virally. StatPro has been externally audited and certified to both ISO 27001 and SSAE 16 information security standards. We have been developing our cloud technology since early 2008, bringing open collaboration and information control to the investment management community. We believe keeping performance data locked away in the middle office doesn’t serve anyone. Sharing portfolio information with your network makes it more powerful, usable and more likely to enhance business decision making or client relationships. Sharing portfolio analysis data across the organisation adds value to the data immediately: it can be analysed, audited and improved. Controlled sharing also adds value to the team producing such information, raising its profile across the wider business.
The new sharing features allow our clients the control they need when deciding how much of the portfolio they share, and with whom they share it. It’s all about users, content and access control. It can be centrally managed and monitored while still being quick and easy to accomplish. Such control enables rapid deployment of business information to any user with a full audit trail and without the hassle and expense of managing local applications.
In 2013, StatPro launched the beta version of StatPro R+, the cloud-based solution for computing accurate performance measurement in the fastest and most flexible way, and the replacement for StatPro Seven. With StatPro R+, StatPro solves two key issues in the industry when measuring performance:
• Speed and scalability: the first beta tests on client portfolios reduced the computational time by a factor of around 100 using the cloud, for the same infrastructural costs.
• Flexibility: StatPro R+ uses technology to simplify the work of the performance measurement team, give them the flexibility to design efficient production workflows, customising imports and controls.
Speed and flexibility mean ultimately that performance measurers will be able to perform their tasks faster and more efficiently, significantly boosting the productivity of these teams.
2014 – Roadmap
The development plan for both StatPro Revolution and StatPro R+ focuses on the functional completion of the two products. The objective is to introduce all those pieces of functionality that can serve the analytics and reporting needs of a large asset manager with the dual objective of starting the migration of bigger StatPro Seven clients while selling more actively at the top end of the buy-side industry.
StatPro Revolution development:
• SAIFMD/UCITS commitment approach calculation: we look to enable the analysis of commitment (exposure and computing exposure) according to the EU rules with regards to derivatives. Hedge funds use derivatives and the AIFMD rules open the issue of computing commitment when derivatives are involved.
• The automation of report production: we want to change the industry and allow our clients to start reporting interactively on the web, while also enabling clients to continue to operate their traditional reporting activity efficiently.
• Fixed income attribution versus benchmark analysis: StatPro Revolution will become one of the only products in the industry covering every aspect of fixed income performance measurement, with fully integrated data, dramatically simplifying the access to sophisticated and beautiful fixed income analytics.
• Advanced Risk Management: relative risk, risk factor decomposition, sensitivity and many other exciting analyses will be released in the module providing more reasons for the front office to use StatPro Revolution.
StatPro R+ development:
In 2013 we released the so-called ‘external’ performance capabilities as a beta, which is the ability to compute the returns of a fund or other portfolio, starting from information on the total market value and ‘external’ transactions, like subscriptions, redemptions and fees.
In 2014 and early 2015 we will be completing StatPro R+ with the ability to perform transactional security-level (internal performance) calculations. This means that StatPro R+ will manage each individual security, computing the true performance generated by all trades in that asset. The sum of all assets’ internal performance is later reconciled with the ‘official’ external performance, delivering very accurate and detailed calculations. StatPro has always had a large knowledge base on how to make these calculations.
Where StatPro R+ adds value is the speed of calculation and in the flexibility of managing the controls and data management processes for cleaning the data, while ensuring the perfect numbers with the smallest possible costs.
14 March 2014