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How Cognivo Re-engineered The Asset Manager’s Operations & Automated Reporting

The Client

A large global macro asset manager with over $2.5Billion in Assets Under Management (AUM).

New York, NY

The Challenge

The asset manager used various legacy methods and systems, including Microsoft Excel workbooks, and Microsoft Access databases, CSV files from third parties to store their data. In addition, the asset allocation, portfolio, and P&L data were being manually extracted from Advent’s Moxy trade order management system and Axys® portfolio management solution. These files were stored in a pre-determined folder structure on a network drive and were maintained by specific team members within the operations team.

As the number of asset manager’s clients grew, and they started diversifying their investments, the shortcomings of having such an ad hoc method of storing, aggregating, and analyzing this data became increasingly apparent. There were issues with data being in inconsistent formats, missing data, and more importantly, it became quite difficult to use this data for any kind (internal, client, compliance) of analytics and reporting.

The Solution

The Cognivo team understood the challenge and documented the requirements of the project. The team subsequently designed a new database architecture, based on the data dictionary derived by analyzing various data sources and the final reporting requirements. The team then designed and developed a software application that intelligently gathered data, analyzed and generated reports, and performed repetitive IT tasks on a nightly basis, as soon as the data was available after market close.

New York, NY

The Result

The approach involved centralizing and aggregating the critical data required to perform day-to-day fund operations and reporting. By centralizing data from various sources into one central data source, as well as automating the report generation, based on compliance and other internal requirements, the asset manager’s reports were automatically generated that same evening, soon after market close.

The automated reports were delivered to the various users and decision-makers within an hour of market close. Also, Cognivo recommended that the software be designed to include reconciliation checks at various stages to ensure data integrity and validity, which practically erased any erroneous reports.

The project took less than three months to implement. More importantly, implementing this one-time bespoke solution enabled the client to own their fund data, and store it internally. This also saved the client from paying monthly subscription fees on expensive off-the-shelf solutions that were not highly customizable. Furthermore, as the solution was customized for the client, making enhancements and upgrades based on the specific needs of the client is relatively easy to accomplish.

Major Benefits

Highly Efficient Workload Management. The middle and back-office operations team no longer need to gather data manually from
various sources, and then reconcile the data after generating the reports. According to the
Chief Operating Officer, the biggest advantage of this new solution is that this allowed them to
better utilize their small team of analysts, who were able to use their time performing more
meaningful tasks for the fund.

Automated & Timely Generation of Accurate Reports. The automated aggregation and centralization of critical operations data, allowed the entire reporting process and the reports to be more predictable and reliable.The daily reports and older archives became available through a centralized dashboard to the management team without having to manually search for them or ask the operations team when needed.

Exceptional Return on Investment. According to the Chief Operating Officer, the man-hours saved by automation allowed at least
one full-time role to be dedicated to other functions within the company. A full-time role saved them anywhere from $75,000 – $90,000 per year. This amounts to over $750,000 in savings over a ten-year period.