EVALUATING WEALTH MANAGEMENT SYSTEMS (WMS)
As a result of these competition pressures, third-party technology vendor software solutions are evolving to give wealth management firms a competitive edge.
- Wealth Managers
- Family Offices
- In-house managed Pension Funds
All aspects of front, middle & back office requirements, delivering CRM, decision support, STP, accounting, CGT, client reporting and everything in-between from a single integrated system or best of breed solutions.
- Order Management: WMS interfaces to execution platforms for trading or has dealing capabilities for execution to be carried out individually or across portfolios whilst ensuring compliance with mandates, regulatory requirements and any relevant tax considerations. WMS should incorporate a FIX. Interfaces to external trading platforms e.g EMX, Calastone and Cofunds are essential.
- Cash Book Accounting: WMS should have ability to manage any type of cash entry; postings to clients, brokers and intermediaries. Each record associated to a default bank account and currency, with entries posted to the designated portfolio and (nominee) company bank accounts.
- Dividend Processing: WMS should provide facility for the capture, monitoring and processing of all forms of investment income, including the distribution and treatment including associated regulatory and disclosure reporting requirements.
- Corporate Actions: WMS enables the highly automated processing of even the most complex corporate actions across all relevant accounts.
- Settlement: WMS monitors daily and future settlement activity across broker and individual client accounts and includes interfaces to a variety of custodians for reporting and reconciliation.
- Nominee/Custody: WMS provides a fully integrated and comprehensive safe-custody facility, allowing stock to be recorded across any combination of pooled, designated or client registrations.
- Nominal Ledger: WMS has nominal ledger supporting internal controls and group accounting practices. WMS combines an extensive array of event driven processes into logical investment related procedures, affording your organisation the ability to handle increased business volumes, whilst reducing the effort spent administering these demands by automating the daily and periodic bank reconciliation process.
- Reconciliations: WMS supports reconciliation for cash and stock.
- Valuations: Real-time positions, fund look-through, and 'what if?' views applied across any hierarchical level.
- Performance Measurement: WMS performance engines use Modified Dietz methodology to deliver time-weighted return. Current and periodic performance calculated at any frequency and presented graphically against benchmarks, market indices and composites.
- Portfolio Modelling & Rebalancing: Define model portfolios to cater for a diversified range of investment and risk objective models. Models may be maintained at sector level to support active management through stock picking or down to individual security level to support high volume automated management of portfolios.
- Currency Hedging: WMS allows the wealth manager to implement hedging strategies.
- Meeting Liquidity Objectives: Utilising a cash ladder, users can determine their own interpretation of liquidity, based upon settled/unsettled cash, fees due, income and standing orders to determine cash available for investment.
- Orders: Orders generated at any hierarchical level for single or multiple portfolios before being automatically passed to the dealing desk for execution.
- Mandate compliance: Application of targeted investment objectives and ensuring that mandates and regulatory requirements are not breached.
- Tax Modelling & Analysis: A highly sophisticated tax allowing any potential tax position to be viewed in conjunction with available YTD allowances.
- Pre & Post Trade Compliance: WMS incorporates a sophisticated and flexible rules based suite supporting both pre and post trade compliance to ensure that investment policies fully comply with both regulatory and mandate requirements.
- Business Intelligence: Flexible reporting across the entire operation in order to support the business managers, risk and compliance teams.
- Marketing, sales & service tools that create a single source of relationship information that is shared throughout the business so that important sales and client service detail is always easily accessible.
- Management Fees: Fees can be charged at family, client or portfolio level at any frequency and on any recurring date using a range of different calculation methods. These range from fixed percentages, fixed values, tiered scales, performance related and any combination thereof and can be charged on the value of the total assets, individual assets, including or excluding income with special provision made for individual assets held in custody and enabling third party fees to be calculated and deducted from the portfolio and paid directly to the third parties associated with the portfolio.
- Compliance: Ensure adherence to client mandates via asset allocation, client specific instructions, regulatory limitations, client agreements and so on.
- Regulatory Reporting:WMS contains comprehensive regulatory reporting functionality.
- Client Reporting: Complete end-to-end solution for report design, data collection and automated distribution. User definable reporting allowing complete freedom of design. Ability to schedule and diarise production runs and combine own market and personalised commentaries alongside KYC, valuation, performance, capital and income transactions, custody and comprehensive tax schedules.
- Client Portal: Online access 24/7 to the investor via a secure login provides access to current portfolio positions and transaction details as well as allowing users' access to electronic copies of all client reports and contract notes.