In the constant search for alpha, we see more and more investment management firms including derivatives in their investment programs. Adding these complex instruments to the portfolio puts demands on accounting and settlement processing and presupposes a suitable and sophisticated technology infrastructure to support performance.
The complex nature of derivatives requires technology systems that can support a wider range of asset classes than traditional equity and bond portfolios, with more sophisticated modeling and risk management capabilities. For many investment management firms, this means upgrading their asset portfolio and management technology. However, the individual nature of each business requires a careful choice of system that most closely matches their requirements.
Learn why derivatives processing capabilities were a top priority for HOOPP when selecting an investment management system.
In HOOPP’s case, being a non-profit pension fund with a pledge to deliver our members actively managed assets using a diversified, long-term, and risk-free investment strategy, we required an IT system that better reflected that strategy. What we needed was an advanced system that was capable of supporting the sophisticated program involving derivatives that forms part of our investment strategy.