Cash Allocation & Rebalancing
pControl Cash Allocation & Rebalancing automates the complex process of cash allocation and rebalancing, complete with cash transfer, order creation and settlement for multi-tiered investment structures.
By capturing a complete view of the actual and target investment structure, Cash Allocation & Rebalancing calculates and creates orders and cash transfers required to rebalance funds to target or allocates based upon asset allocation parameters. This allows product managers to easily deliver new products supporting any level of interfunding with reduced time-to-market.
For example, using Cash Allocation & Rebalancing, organisations can automate the dynamic asset allocation models for ‘Target Date’ or ‘Lifestyle’ fund products. This ensures that the asset allocation model is continually rebalanced to match investor maturity profiles and future investment strategies.
- Maintains target investment structures, strategic and tactical asset allocations, upper and lower allocation bounds, minimum transaction amounts, rounding, and other related static data.
- Automates upload of cashflows from third party transfer agency, policy holder and institutional investor systems.
- Supports standard allocation methodologies, including Straight Percentage, Straight Percentage from Orders, Allocation Towards a Target, and Rebalancing.
- Integrates with Box Management capability to meet Life Company asset / liability matching requirements.
- Business users can maintain allocation parameters or define new allocation methodologies.
- Configurable compliance rules ensure orders are checked prior to approval.
- Users can analyse order flows through use of ‘what if’ cash allocation scenarios.
- Ability to approve multi-level proposed orders.
- Support for direct general ledger updates and settlement instructions.
- Calculation of liquidity positions and cash forecasting.
- Interfund Explorer provides a graphical display of the fund structure with navigation and drill down, including current and target asset allocations.
- Full audit trail of all order instructions and recording of detailed processing activity.
- Production Summary dashboard delivers progress monitoring of all cash allocation activities for each processing date.
- Attention Status Monitor dashboard provides real-time exception monitoring for any activity with critical completion or Service Level Agreement deadlines.
The Cash Allocation & Rebalancing end-to-end control framework and standard process template delivers a known end-state with defined target metrics. This simplifies client re-engineering decisions and ensures a predictable time-line to benefits.
The standard process template includes the following:
- Loading of external cash flows
- Loading of target investment weights
- Calculation of cash positions
- Loading of actual investment weights
- Calculation of proposed orders using defined allocation methodology
- Testing of proposed orders using compliance rules
- Approval of proposed orders