Modelling Investment Advice


This example describes how we helped automate a complex daily business process for a large fund manager.


A large Australian fund manager created a structured investment product for which the hedging and trading advice was managed by an external bank. In order to manage their exposure, the fund manager had a requirement to check the integrity of the advice it was receiving on a daily basis before acting on it. This monitoring role involved performing a series of calculations on daily market data and checking that the advice received fell within the mandate of the product disclosure statement.  


In order to reduce the workload on the individuals responsible for this monitoring role, Quantalytic built an automatic mechanism that uploaded the daily market data for the equities concerned and effectively simulated what the external party would be doing. The recommendations that were calculated were then compared with what the external party recommended and discrepancies were discussed with the bank. This tool and others built by Quantalytic at the institution allowed for significant efficiency gains and lowered the net financial exposure of the organisation.