Case Studies

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Client

A multi-fund investment firm running UCITS, managed accounts and AIFs in multiple jurisdictions, using different but industry recognised software for order management and position management. Additionally, the firm used spreadsheets to reconcile and construct the manager’s estimation of NAV. Trading was voice and electronic, and the firm contracted with a third party for risk information.

Challenge

The in-house middle and back-office teams covered trade confirmation, daily reconciliations, trade allocation checks, regulatory / mandate-based limit checks and NAV confirmation to administrators.

Given the disparate systems in use and the extensive use of spreadsheets, the firm struggled with the workload and had little confidence in the information flow. This meant that more human resources were allocated to ensure accuracy, while timeliness was still a challenge.

Solution

After a review of the flow of trade information, our implementation of VCON confirmation for all voice trades eliminated manual entry of trades into the OMS / PMS. Pillar integrated the OMS and PMS end of day flows by liaising with each of the systems providers, who could not integrate directly, creating a flow control to ensure the availability of correct files and allowing end of day trade files to be sent automatically to prime brokers and depositaries as well as the risk data provider.

Pillar created an intranet that provided a dashboard for:

1. Daily reconciliations of cash, positions and trades for each fund / managed account;
2. NAV reporting for each fund / managed account including subscriptions / redemptions;
3. Risk & counterparty exposure reporting; and 
4. Reporting on regulatory / mandate limits. 

Actionable alerts on limits and expiries were system-generated to key staff, and we ensured the continuation of system familiarity and performance through training the firm’s MBO and IR teams on the use of the new tools and the information flow.

Client

A long-only equity value investment manager looking to expand its AUM after two years of strong performance annualising at 30%. The firm had outsourced compliance to a consultancy and carried out all other functions internally.

Challenge

To gain new assets the firm’s objective for 2021 was to be more proactive on asset raising and, as a prelude, to ensure that it could pass operational due diligence. Given the size of the firm, an in-house COO resource was not economically viable.

Solution

Pillar advised the firm on changes and assisted them in evaluating potential options. The firm decided to engage Pillar’s Drop-In Service for a COO for one day a week, which led to the drafting of a change programme in the following key areas, in which we:

1. Conducted a review and revision of marketing materials to be more impactful, consistent and succinct. On this, we leveraged Pillar’s network of investor and marketer contacts for input;
2. Issued an RFP to two compliance consultancies and helped negotiate and select the final candidate. This saved on costs while also providing expertise on SEC registration and future compliance;
3. Assisted in hiring the in-house marketer by interviewing candidates;
4. Developed an employee handbook, employment contract and had these reviewed by an employment lawyer who is part of the Pillar network;
5. Integrated systems with the electronic execution platform in order to report execution fills and to the depositary for reporting on exposures, positions and cash;
6. Worked with the newly appointed compliance consultant to review the draft compliance manual, CMP and related documents;
7. Implemented new means of engaging with existing and potential investors;
8. Initiated a review of monthly investor letters as a sanity check for commentary and compliance prior to the external compliance review, while further assisting in preparing an investor presentation on a periodic basis;
9. Assisted the firm in its application for SEC registration as an investment advisor.