Since 2008, SEI has maintained a relationship with a sovereign wealth fund (the Fund) with over £72 billion in assets under administration. This case study demonstrates how the Fund was able to utilise our unique capabilities, which are now part of the Enhanced CIO solution.
The Fund was looking for a way to streamline data aggregation, reporting and other operations for a complex portfolio of assets. The Fund relied on its custodian to perform functions beyond its recordkeeping capabilities, such as data integrations and performance and risk analytics while allowing the Fund to maintain its investment office. In selecting SEI as a strategic partner, the Fund established a transparent set of books and records, as well as efficient data aggregation, reconciliation, performance analytics and reporting processes.
Challenge: An over-extended investment office seeking operational support
Prior to converting to SEI, the Fund relied on custodian data to create reporting. However, given the complexity of the portfolio, the custodian’s recordkeeping capabilities were not sufficient to meet the Fund’s needs. The Fund held over 900 positions, with approximately 50% comprised of private equity and hedge fund positions across segregated accounts held by up to 50 managers, creating challenges in data aggregation and reporting. Specifically, processing the private equity and hedge fund positions required manual work, placing a burden on the investment office and creating challenges in data aggregation and gaining transparency across multiple accounts and products.
The Fund wanted to maintain its investment office, but needed a partner with expertise in portfolio accounting, data integrations and performance and risk analytics. This would allow the investment office to focus on setting and managing its investment strategy and asset allocation, rather than being overwhelmed by day-to-day operations.
Solution: Partnering to bridge the gap between providers and technology
At the onset of our strategic partnership with The Fund, we built processes and data feeds between the custodian and investment managers to create an independent set of books and records from which performance and risk analytics could flow. SEI maintains the data in its portfolio accounting software, performing daily reconciliation of cash, positions and transactions between the custodian, investment managers and our security master. This daily reconciliation can ensure accurate data feeds into the reporting platform, our web-based dashboard. The Fund can also access up-to-date and reconciled information on a daily basis through the dashboard. Additionally, SEI empowers the investment office to meet their goals with quality, single-source data through two custom data feeds to populate their in-house systems with the same data SEI uses.
From an operational standpoint, SEI also provides daily support of the Fund’s private equity and hedge fund assets by processing capital calls, partner statements and distribution statements from fund administrators. Our solution provides a single contact point to consolidate multiple vendors and technology such as custody, data aggregation, risk and performance analytics, reporting and document management, simplifying the operational interface the Fund relies on.
In addition to the data integrations and the downstream benefits resulting from reconciled data, the Fund leverages SEI’s dedicated client service team for ad hoc reporting support. This creates operational efficiency for the investment office, allowing them to pursue their investment objectives and maintain a long-term focus on their portfolio.
Conclusion: Increased focus on investment strategy and asset allocation
Through SEI’s solution, the Fund was able to simplify operations across its complex portfolio and bridge the gap between multiple investment managers and the custodian. Relying on SEI’s infrastructure to build connections between vendors allows the Fund’s internal investment office to leverage a single point of contact for its data, risk and performance analytics and reporting needs, and create a reconciled set of books and records across multiple investment managers. This allowed the investment office to focus where their expertise lies–in managing the asset allocation and investment strategy.
SEI Service Overview
- Creation of independent books and records
- Data reconciliation and aggregation
- Investment processing and portfolio accounting
- Security Master and third-party data integrations
- User-generated reporting from SEI Dashboard
- Performance and risk reporting
- Exposure details
- Consolidated investment manager holdings reporting
- Performance reporting and attribution
- Mandate compliance testing software
- Private equity and hedge fund statement processing (capital calls, partner statements, distributions)
- Custom data feeds
- Document/workflow management
If you would like to discuss your organisation's specific challenges or find out more about our solutions for investment offices, contact Kris Shergold for an introductory meeting.
This case study describes the attributes of a specific client that SEI has determined is comparable based on objective criteria, including organisational goals, asset size, and required services. Any discussion of specific services is intended to help clients understand SEI’s customised approach to providing outsourced investment management services. The information expressed herein represents the current, good faith views of SEI at the time of original publication, and has not been updated.
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