Individual managed accounts (IMAs) are growing in popularity with their flexibility and transparency. However managed accounts create operational complexities that FMO can help to resolve. FMO has had great experience over the last five years with multiple clients using managed accounts.
The biggest challenge that FMO can help clients overcome is to ensure that IMAs are equally allocated to, based on their individual AUM.
The FMO Portfolio Modelling module can determine order sizes per account to:
- meet target cash or investment exposures;
- replicate the exposures of another portfolio;
- re-balance exposures after capital movements.
Clients can run pre-trade compliance checks on models before they generate orders which can then be exported to external trading systems via FIX.
FMO also enables clients to pre-set 'fill allocation ratios' so bulk fills can be automatically allocated across multiple accounts.
Once orders are filled on the market, FMO can send electronic settlement instructions per account to prime brokers and fund administrators.
All reporting can be shown at a managed account level, or at a consolidated level across a set or all managed accounts. See Reporting
Case Study: Asian Focused Asset Manager with Unit Trusts and IMAs
Front Office Features
FMO provides fund managers with the following capabilities:
- Ability to set-up complex fund structures that reflect the investment decisions in the front office, whilst also catering for the operational functions in the middle and back office.
- Order Management
- Portfolio Exposure Modelling
- Record long or short exposures on a broad range of global asset classes
- Ability to choose P&L calculation method (i.e. Average Cost / FIFO / Realised Profit Minimisation etc) on closing trades at a portfolio level
- Conduct attribution analysis to measure portfolio performance by Industry / Currency / Asset Class, etc
- Access to a suite of live and historical multi-currency reports that include:
- NAV
- Profit & Loss (Unrealised / Realised)
- FX Exposures
- Open Positions
- Trade History
Middle / Back Office Features
FMO provides the back office with the following capabilities.
- Confirming Trades
- Ability to choose P&L calculation method (i.e. Average Cost / FIFO / Realised Profit Minimisation etc) on closing trades at a fund level
- Electronic Trade Files to Prime Brokers / Administrators
- Corporate Actions (dividends / interest / bonus issues / rights issues / takeovers... etc)
- Journal Processing
- Bank / Custody Reconciliations
- Contact Management
- Automated Emails
- Revaluations
- Repos
- Access to a suite of live and historical multi-currency reports that include:
- Account Balances
- Transaction History Reports
- Trial Balance
- Income/Expense Reports
- Stock Holding (Custody) Report
- FMO-iQ...an online report builder that enables clients to create custom reports for internal distribution that can be viewed in HTML / EXCEL / CSV
Ad-hoc Features
FMO provides additional functionality to assist in the maintenance of FMO.
- FMO-iQ...an online report builder that enables clients to create custom reports for internal distribution that can be viewed in HTML / EXCEL / CSV
- User Management...FMO provides clients with a multi-dimensional security module for defining user permissions.