Cash Allocation & Rebalancing automates the processing of orders and cashflows, complete with order creation and unitization for multi-tiered investment structures. It also evaluates a fund's liquidity position and actual investment position into its underlying assets. 

By capturing a complete view of the actual and target investment structure, Cash Allocation & Rebalancing generates orders required to rebalance funds to target or allocates cashflows based upon asset allocation parameters. This allows product managers to easily design and deliver new products to support any level of interfunding with reduced time-to-market.

Investment Strategy & Compliance

  • Maintains target investment policy, strategic and tactical asset allocations, upper and lower allocation bounds, minimum transaction amounts, rounding, and other related static data
  • Business users can maintain allocation parameters or define new allocation methodologies
  • Configurable compliance rules ensure allocations are checked prior to approval
  • Interfund Explorer provides a graphical display of the fund structure with navigation and drill down, including current and target asset allocations

Methodologies Supported

  • Straight Percentage
  • Zero Cash To Allocate
  • Towards Target
  • Re-balance to Target
  • Partial Re-balance to Percentage Target

Model Portfolios & Glide Paths

Organisations can also automate the dynamic asset allocation models for ‘Target Date’ or ‘Cohort’ based fund products, ensuring that the asset allocation model is continually rebalanced to match investor maturity profiles and future investment strategies.

  • Support for model or notional portfolio allocations to automate processing on ‘Target Date’ or ‘Cohort’ based fund products.
  • Provision for automated glide path for smoothing allocation targets over a defined period. 

Balancing Options

  • Support for Balancing/Default Options which can be used to reduce the number of transactions that are sent to the market within an investment structure and also to keep a set of investment (balancing) options’ actual allocations in line with their targets.

Proposed Orders & Approval

  • Users can analyse order flows through the use of ‘what if’ cash allocation scenarios.
  • Ability to amend and approve multi-level proposed orders.
  • For life company processing, Deal Consolidation links the confirmation of external market orders to internal orders within the fund structure.

Integration

  • Automates upload of cashflows from third party transfer agency, policy holder and institutional investor systems, through pControl's native Data Manager.
  • Integrates with Box Management extension capability to meet Life Company asset / liability matching requirements.
  • Cash Allocation & Rebalancing can be configured to operate on a fully automated basis, or be configured to await user authorization when operating in conjunction with the Portfolio Management Dashboard
  • Cashflows are automatically implemented and transaction life-cycle is managed via Order Management.

Extensibility

  • Where all Fund Accounting functions are undertaken within pControl, then Cash Allocation & Rebalancing directly updates transactions into pControl's single record Fund Ledger processing, Gain / Loss Management and Account Views functionality.
  • Where direct asset valuations and transactions are required to be imported from external accounting systems or Third Party Administrators, then Asset Level Validations (optional) may be deployed.

Service Level Aware

All pControl solutions are Service Level Aware and can internally monitor and escalate late running events such as late data arrival, and late override / approvals and final release within operational cut-offs and processing calendars.

Operations teams can monitor Service Level compliance through the following dashboards:

  • Production Summary dashboard to deliver progress monitoring of all cash allocation activities for each processing date.
  • Attention Status Monitor dashboard to provide real-time exception monitoring and aging for any activity with critical completion or Service Level Agreement deadlines.

Cash Allocation & Rebalancing is stakeholder and auditor friendly through a full audit trail of all order instructions and recording of detailed processing and compliance activity.