An investment management system is a plan of action undertaken by an organization to ensure that its infrastructure and assets are employed to deliver a desired standard of service. Such investment management systems are normally employed where the available assets are co-dependent in nature and are as such meant to work cohesively for the achievement of optimal results.
The main purpose of an investment management system is to clarify how a given standard of service will be provided using designated assets in a manner that is both optimal and justifiable. The term “optimal” attempts to describe a scenario where a superior standard of service can be best achieved at a minimal overall cost. Justifiably, on the other hand, has to do with a full presentation of all the costs and benefits for scrutiny purposes to gauge the effectiveness and efficiency of the activity.
An organization undertakes an investment management system to have a workable system that looks into three major facets of physical assets management: maintenance, upgrading and operation. When the framework for these three tasks is set, it becomes easier for an organization to fully understand the nature of its capital assets and respective values. An organization also becomes better placed to make sound investment decisions.
One of the most relevant purposes of an investment management system is to help an organization make informed planning decisions. A sound investment management system gives a useful framework that helps measure overall performance and gives vital information to help in internal long term and short term planning.
An investment management system is successful when the desired standard of service translates into measurable benefits that can be monetary, social or environmental. While it may be hard to quantify some of these benefits, it is essential to give some kind of assessment that will indicate if the investment management system is worth the ongoing costs with respect to the benefits accrued.
Hedge funds have complex accounting needs. Many of them report their returns ti multiple parties, like financial authorities, prime brokers and investors. They also have to handle complex transaction histories. Because of this, many hedge funds use fund management software packages to deal with their accounting needs. These software packages work alongside other software that they use.
Most hedge fund management software packages work with other software used by the hedge fund. For instance, a hedge fund might have a software package from its prime broker, which it uses to calculate profits, losses and cash positions every day. That package can feed a list of transactions and price changes into the accounting software of the company. The output will then be the fund’s profit and loss, which can be send to investors. This allows the fund management software to partially automate the profit and loss calculation process.
FundCount Accounting Software
One popular fund management software is FundCount, which handles a wide range of hedge funds, including typical funds and funds of funds. It is designed to handle as many accounting functions as possible. This fund management software imports information from other reporting sources, and outputs the correct financial results and filings. This is designed to reduce fund management expenses without sacrificing reporting quality. FundCount is a popular choice among larger funds, but its full feature makes it less viable for smaller companies.
Fitek’s Hedge Fund Software
Fitek is another big provider of hedge fund management software. Just like FundCount, this software is designed for several different, related industries, including hedge funds, funds of funds and private equity firms. The key benefit of this fund management software is that it creates an online portal for investors. Through the portal, investors can access all of the information needed to understand the reported results of the company. This streamlines the process for investors, so fund managers spend less time talking to outside investors and more time managing their assets.
If you have worked in a school, church or government office, you have probably heard the term fund accounting. This accounting method is chosen by most nonprofit organizations. It is required for all government bodies by the generally accepted accounting principles. Fund accounting allows such organizations to separate income and expenses by class, giving the reviewer of the financial statements a proper accounting of all like activities.
Simply speaking, fund accounting is like having an entire financial record set, including the balance sheet, income statement and statement of cash-flows for separate sub-entities in an organization. It is a method of accounting that allows the user to classify income and expense items according to a specific fund. For example, a church may have a general fund, benevolence fund, building fund and a mission’s fund. All these receive revenue and have expenses associated with the individual fund, even when they are part of the same larger group. Fund accounting helps keep track of the individual funds and the overall entity.
Governments and religious organizations receive money from donors who impose regulations, restrictions and limitations to its use. Fund accounting helps ensure the observance of limitations and restrictions placed on these resources. While the individual fund is accounted for in accordance with the imposed donor restrictions, fund accounting also allows management to view all funds in a consolidated statement to determine the financial states of the entity as a whole.
There is a wide range of accounting products especially design for nonprofit organizations looking to set up this type of accounting system. Fund accounting can be set up in a basic software like QuickBooks by using their classes to structure your accounts. However, depending on the size of the nonprofit organization, it would be better to buy a software that has been designed especially for fund accounting.
Most fund accounting programs have some form of consulting and training program that is bought with the software. Shelby Systems, for example, offers their church accounting products with free training. It would be wise to get a solid understanding of accounting before you try to set up this kind of system.
Yep. As you might have noticed, it’s become almost impossible to buy a vacation the old school way – e.g. through a magazine or simply by picking up the phone or walking into a travelling agency. No. We simply don’t do that anymore. The travelling business has gone online. But with what effect? To me, that’s an interesting question.
Every time I have just a tiny plus on my bank account, I start searching the web for Iceland travels or Southern Europe sunny vacations. And I’m impressed by all the adventures Iceland has to offer. Who would have thought that Reykjavik had so much life and adventure? Obviously not me. I was impressed to see how many cultural opportunities and experiences Iceland travels has to offer. Not to mention all the wonderful trekking and beautiful geysers. I think it’s a huge advantage to offer such specialized excursions to wonderful places like Iceland. It gives the travel agency the opportunity to show the customers a special place like Iceland. I actually think that I want to go an a trip to Iceland within the foreseeable future.
Fund management is a set of activities that are carried out in support of the actual process of running a collective investment scheme, whether the scheme is a traditional mutual fund, a hedge fund, Pension fund, unit trust or something in between –a duty of a fund manager.
Fund manager often choose to outsource some or all of these activities to external specialist companies such as a fund’s custodian bank; these companies are often known as fund administrators. These administrative activities may include the following administrative functions which may include fund accounting functions.
Some of these items may be specific to fund operations in the US and some pertain only whether the fund is an SEC registered fund:
- Calculation of the Net asset value
- Preparation of semi-annual and annual reports to shareholders
- Maintenance and filing of the fund’s financial books and records as the fund accountant
- Payment of fund expenses
- Settlement of daily purchases and sales of securities, ensuring collection of dividends and interests
- Calculation and payment to the transfer agent of dividends and distributions (if required)
- Preparation and filing of the fund’s prospectus
- Preparation and filing of other SEC filings/reports
- Calculation of the total returns and other performance measures of the fund
- Monitoring investment compliance with SEC, prospectus or U.S. Internal Revenue Code restrictions
- Supervision of the orderly liquidation and dissolution of the fund (if required)
As a fund administration manager, whether the process is internal or external, you need to manage every aspect of fund administration and fund accounting in a cost-effective manner. And a good fund administration system tool helps you to do just that, providing fully automated workflows and regulatory reporting across a broad range of complex and sophisticated fund structures – efficiently and effortlessly.
The primary goal of fund administration system tool is to put an ease to the process as a whole. This tool will provide fund managers the capability to handle increasing transaction volumes, reducing time-to-market for new funds and scaling your business without an increase in marginal costs. Fund administration system will also enable you to adapt to various regulations simultaneously, and you benefit from the transparency available throughout the entire investment process.
A pension fund plays a very significant role in businesses and companies, both public and private. This can be a plan, fund, or scheme provided to employees as a retirement income. Pension funds hold a huge amount of asset in the industry. In the life of shareholders and company owners, being able to identify the best pension fund management system will surely be a benefit to the company and the recipient. Pension fund management system is a fully integrated system developed specifically to manage all processes that occur with a social security organization including registrations, contribution collection, benefits calculation and payroll of recipients
With the continuous innovation and development of technology year by year, it is projected that by now, management systems in line with pension funds have been sophisticatedly empowered. A lot of efficient tools give you a hassle free way of measuring, computing and identifying dimensions and allocation of funds. As a result, progress would be as simple as counting numbers.
Considering any pension fund management system available in the market, you must also consider other areas key areas of your organization, particularly on personnel budgets, be able to identify the suitable one for your company. Costs of the company’s pension fund services must be minimized. That’s the reason why being able to carefully choose a system which can elevate the company’s endeavor on this matter should dominate along the process.
The coverage of has a limit. Thus, make sure you take a lot of researches to fully identify the best. Given that you have found one ideal pension fund management system, still continue to be very particular on its systematic ways to ensure that you are on the right track. It is best that you have a variety of choices.
Of course you would also need to discover those highly appreciative employee retirement schemes which are known around the world that you could possibly apply on your company. Deal with award-winning individuals and trusted partners to confidently pursue on these goals. You can try to explore a lot systems that will help you tag the system that would best suit to your institution.
Investment management solution techniques fall into two major camps: technical analysis and fundamental analysis. Technical analysis looks at the price of the security and its pricing trends over time. This analysis allows the investor to monitor the mood the market around the security. Trends can reveal that a security trades at an over-sold or an over-bought environment for the investor to make buy or sell decisions. Fundamental analysis examines the underlying company with price as a secondary consideration. Once this analysis succeeds, companies with superior market and management position will change.
Technical analysis is an investment management solution method of evaluating securities by analyzing statistics generated by market activity, like volume and prices. With technical analysis in an investment management solution, there is no attempt to measure the intrinsic value of a security. Instead, they use charts and other tools to identify patterns that can suggest future activity. The analysis will attempt to determine the short term price direction of the security by monitoring the historical price trends and predict of those trends will repeat in the future.
Fundamental analysis is an investment management solution method of evaluating a security that entails attempting to measure its intrinsic value by examining related economic, financial, and other qualitative and quantitative factors. This investment management solution method attempts to study everything that can affect the value of the security, along with its macroeconomic factors like overall industry and economy conditions and company-specific factors, like financial condition and management.
Quantitative and Qualitative Analysis
Quantitative analysis on the investment management solution attempts to quantify a company or measure their financial ratios like earnings per share, debt to equity, price to equity, or discounted cash flow. Many investment management solutions have access to financial statements and will have little room to dispute the financial ratios. Qualitative analysis will examine the qualities of a company, which are subjective-based. Those judgments examine the management expertise, strength of research and development, labor relations and industry cycles. The qualitative analysis varies widely, and will really define the failure or success of an investment management solution.
Post trade processing is very important in the business. Transaction details are easily verified whenever post trade processing tasks are handled smoothly. Aside from that, mistakes due to human error maybe sorted out right away as well.
This process is important mist especially when taken into consideration the time transactions that needs to be executed immediately. Like any other business solutions, there are a number of tools available now that will be able to hasten the process of post trade processing task verification.
This tool will lessen the chances of human intervention most especially in those routine processes that needs to be done.
There are some tool features and benefits that one needs to look into for further information and testing since this will make the many post trade processing tasks easier. Complex post trade processing tasks may be simplified as well once this tools are used by the business.
Automated and easy
There is a high demand now for automated processes since this will lessen the time spent on updating the entire process. And since there will be a number of post trade processing tasks that needs to be accomplished, it is recommended that should a tool be used for doing such, it should be something simple and automated at the same time.
This tool should be able to carry out post trade processing tasks such work flow authentication, reconciliation and completion. It will highly efficient for the operational process of the business most especially if the tasks are done accurately with this tool.
Benefits of an automated process
Processes that are automated may not be perfect and might still come with technical or operational glitches but the benefits will outweigh risks. Manual processes will always bear the risks of errors due to human intervention.
Human intervention will be minimized once an automated workflow on the different post trade processing tasks will already up and running. It will be easier to get updates and information and risks on both operational and time risks maybe minimized as well when there is an automated process in place. This will be highly beneficial for the business.
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Insurance companies live and die by prudent insurance risk management. The purpose of an insurance company is to determine the probabilities of risk and design a premium structure to ensure that the company has a high chance of profiting in the future. The higher the risk is, the larger the premium, and vice versa. Also, insurance companies have to differentiate risks posed by various individuals, companies, asset classes and other tasks. The more precise the insurance risk management model is, the better an insurance company can serve their customers and derive profit.
With solid insurance risk management, an insurance company can determine how high they should charge a premium to certain customers in a particular period. For instance, if the company knows the probability that a male of a certain age who smokes has a likelihood of contracting cancer; the company knows that it should charge a higher premium to the insured person. The charge is the risk of insurance, and protects the insurance company from insolvency. This increases the chances that healthier insurance customers can afford the premiums.
The nature of the insurance business is that small errors in the insurance risk management model can lead to long term insolvency. An insurance company builds its reputation on a long record of just paying claims. Insurance companies write contracts and uphold them. Miscalculations in insurance risk management models lead to big losses at the company over an extended period. It is important for companies to use accurate data to determine their insurance risk management models and assure that they stay in business over the long run.
If an insurance company has a more competitive insurance risk management methodology relative to its competitors, it can afford to lower the cost of coverage. This increases the insurance pool which improves the level of capitalization for the company. In general, the more people signed up for an insurance program, the more the premiums. This cycle in the insurance business happens when an insurance risk management system is accurate, as the insurance company is likely to make a profit on the big majority of customers.
When it comes to monitoring intangible aspects and tangible assets of an organization or business, asset management software should be acquired. This type of software gives way to a systematic process of operating, maintaining, upgrading, and disposing of assets that will be cost-effective for that certain organization. Also, it is highly recommended that asset management software be a system that allows real time access to updates, allows an organization to grow and software or system that will be tailored to what the organization needs.
Automated and real time access. Information is very important. Real time access to any important update or information needed provides not just a competitive advantage to the business but allows them to generate reports as well each time they need to do so. This indicates highly effective asset management software. More so, this software allows processes to be automated as well since access so that it cuts down on both costs and risks due to human intervention.
Promotes business growth. Both goals for growth and success will be vital in this kind of software. It is advantageous for the organization to use such asset management software. Looking further into those reasons why such software is important, one can see that this software has to have certain key features but growth is an ultimate goal of any business or organization. An asset management software will hasten this process or aim for growth since there will be more time for the company to conceptualize ideas and incorporate it to this software for their own advantage.
User-friendly and customizable. Access to asset management software will not only be for those in the IT department of a certain organization so this type of software should be user friendly and customizable. It is important that the user interface be understandable at one glance, if possible, so that those who are given access to do updates or generate reports for example will not have a hard time getting such information. Once this is achieved, then it will not be a burden anymore to have such asset management software explained further to any person who has been granted full access to it.