It has long been the bane of buy-side firms — how to understand, manage and accurately account for all the costs associated with their margin, stock borrowing and financing agreements. Fund managers that are able to better control these costs though will see a significant boost to their bottom line.

So any fund administrator that can take on the task and help minimize their clients’ agreement expenses will be delivering a truly value-adding service. And, especially given the performance and fee pressures funds currently face, that is an excellent way for your fund administration offering to stick out from the crowd!

Take control of margin and financing costs

Of course, it’s no easy task. Much of the difficulty stems from a chronic lack of transparency into the margin and fee calculations. And it is made even worse in today’s multi-prime environment, where gathering, managing and analyzing each prime broker’s margin and financing statements has become even more laborious.

But what if you could leverage some powerful and automated tools to help?

We thought the same, which is why we developed our Syncova solution suite.

Thanks to its automated and configurable calculation engine, Syncova is able to deliver high quality analysis, reconciliation (including integration to third-party reconciliation tools), replication, alerting and reporting—all the vital capabilities you need to support your clients’ margin and financing activities.

Gain that extra competitive edge

With Syncova, fund administrators can:

• Monitor, control and record clients’ financing costs and stock loans across multiple counterparties.

• Validate the accuracy of debit financing and borrowing charges by replicating the broker calculations, and provide accurate side-by-side comparisons with the broker reports.

• Support all financing calculation structures, including net and gross financing, asset-based financing, and tiered spreads.

• Improve transparency and reduce the risk of overcharges with broker-by-broker comparisons, helping firms ensure they pay the lowest possible financing costs and borrowing fees.

• Create daily reports detailing all counterparty margin requirements and financing accruals, to give funds total visibility into their margin commitments and financing costs at the start of each day.

• Attribute financing costs to positions at whatever level of granularity is required, whether by strategy, deal block or individual manager.

• Accurately consolidate and attribute margin by underlying fund, strategy or portfolio manager for improved analysis and control.

• Reduce operational risk by quickly identifying and resolving any reconciliation issues with prime brokers.

The result is unprecedented transparency, and improved accuracy and control over margin, financing and stock borrowing costs—knowledge your clients can use to better manage and negotiate their counterparty relationships, minimize their related costs, and enhance their profitability.

 

Learn more about Syncova for fund administrators in this short overview.