Financial Results Delivered with Cogency

Transcription

1 Financial Results Delivered with Cogency Cogency Software offers the best accounting solution available to the FOHF industry today for use by Fund of Hedge Fund Administrators. Cogency Fund of Hedge Fund Insight was built from the ground up as a financial tracking system for fund of funds, and is filled with features that make it fit their operations like a glove : Forward ripple of back-dated changes The FOHF workflow is always running multiple open months. Automated ripple ensures that back-dated changes ripple forward updating subsequent transaction amounts, quantities or prices as needed. Manager ROR propagation Manager returns apply to all lots, share classes and series until they provide returns at a more granular level. Valuation of hedge fund positions Weekly estimates, month end estimates and month end finals, and prior period adjustments, model the way hedge fund managers report their results to fund of funds. Dynamic hierarchy of internal funds - Internal trades, such as a feeder fund investing into a master fund, create linked transactions that always stay in sync as prior month-end values get finalized. This allows for accurate and complex internal fund structures that can be as dynamic as your business requires. Complex transaction types Portfolio, investor and internal investment transactions may be of types such as transfers, assignments, rebalancing, series-rollups, dividends, equalization conversions. Beyond accounting In addition to accounting tailored to funds of hedge funds, Administrators using Cogency build a stronger relationship with their clients by providing them with Cogency s Investor Relations and Portfolio Management features. Once you have put the accounting in place, it is simple to add portfolio liquidity and exposure analysis, investor reporting, manager due diligence tracking, and more, all fully integrated with the accounting data Cogency Software, Inc. Page 1 of 6

2 Accounting Features and Functions Cogency has a comprehensive accounting system for managing funds of hedge funds Back Office Portfolio Accounting Investments into Onshore LPs and Offshore Ltd Internal Investments Feeders into Masters into sub-masters Support for any type of complex internal fund structures Fund Look Through Cost basis reporting Transaction management Portfolio subscriptions, redemptions, transfers, assignments, series rollup, by local or base amount, quantity or percentage Portfolio Valuation Weekly estimate, month end estimate and final valuation of positions Valuation as ROR, Price per share, or capital balance Many categories to classify income: Regular, New Issue, FX, Prior Period Adjustment, Dividend Side-Pocket (Bucket) Accounting Full financials - Portfolio, Capital and Income all segregated Portfolio rebalance/reallocate across buckets Investor rebalance across buckets Separate fees, liquidity, NAV Partnership and Share Based Accounting Onshore partnerships, lot level accounting Offshore ltd, multi-currency share classes and series accounting Investor subscriptions, redemptions, transfers, assignments, series rollup, Calculation of Management fee, Admin fee, Incentive fee New Issue deminimus allocation Expense caps Uneven allocations Financial Reporting GAAP Income statement, balance sheet, trial balance, statement of cash flows Cost basis portfolio reports Full financials for side-pockets (buckets) Base currency, or local currency financials Historical fund NAV reports Middle Office Cash Management Multi-currency cash and pending investment accounts Pending Investments tracking Trade confirms sent / received Wire-transfer selection from pending investment list Holdback reporting Cash projections Multi-currency and option trading Spot trades Currency hedging, tracking of unrealized positions Exposure analysis, hedging suggestions Options trade ledger Accruals Automated recurring transactions Manual journal entries Real time P&L 2009 Cogency Software, Inc. Page 2 of 6

3 Beyond Accounting Once you have the portfolio and fund accounting in Cogency, you can get added value from these additional modules with little additional effort Cogency Investor Insight Cogency Investor Insight addresses the large number of touch points involved in the investor relations area of hedge funds and fund of funds. Investor Insight lets users slice and dice investor and contact data in an intuitive, easy-to-use interface, and to continuously monitor new, key and significantly changed information about investors and prospects such as new and top investors, investor cash flow activities and balances, ERISA allocation, etc. It provides a 360-degree view of each investor with detailed information as needed Track all investor-related relationships Track due-diligence activity with investors Manage investment activity and balances Automate investor communications Maximize the value of key relationships Cogency Portfolio Wisdom With Cogency Portfolio Wisdom, Cogency has built a very robust and industry specific model to capture exposure and liquidity information specific to fund of hedge fund operations. Cogency Portfolio Wisdom provides insight into the performance and exposure information about the firm, funds, portfolios, and managers as well as insight into liquidity, capital, investor composition and cash and currency positions. It also has a manager due diligence module that shares contact management data with Cogency Investor Insight. Throughout the suite of dashboards, users can navigate through many different dimensions: Time View a single month, or choose to see drift or aggregation over time, in tables or graphs. Facts Choose the data-elements in each view, from lists that include net, gross, exposure, attribution, dollar returns, rate of return, and more Exposure hierarchies Store exposure information for five user-defined dimensions, usually used for sector, region, strategy, market cap and asset class. Roll up countries to regions, industry to industry group, and other user-defined hierarchy levels. Organization See returns by strategy across all funds, manager across all strategies, funds across all managers, managers across all share classes, or any other relevant system hierarchy Cogency Software, Inc. Page 3 of 6

4 External Interfaces Cogency operates within the fund of funds ecosystem, connecting seamlessly to historical data and to the counterparties in your day to day operations. On-Boarding Loading history Use Cogency s On-Boarding toolkit to load portfolio, capital, and balance sheet history and/or start date values. Accounting on Cogency can start any time in the year: At the beginning of a fee-accrual cycle, for complete year records, or At any point during the year, by loading high-water-marks and loss carry forward Transaction import Trade Recommendations Load portfolio trades recommendations from the portfolio manager, or investor trade recommendations from the investor relations team or from an administrator sub-red log. Import them via web service or Excel, View recommendations on-screen, edit if necessary, and manually or automatically promote them into the accounting system Trade confirmation Send trade reports to a custodian, record confirmations and changes, and send final confirmation back to the originators. Financial transaction import Use web services or Excel formats to optionally import ongoing activity into Cogency Prices (manager returns, and currency forward prices) Cash transactions, from a custodian, an online bank account, or from Quick Books Reconciliation tools Capital Reconciliation Cogency s Capital Reconciliation tool automates the verification of owner capital balances, charged fees, and allocated income in Cogency against values in an Excel worksheet. It points out discrepancies and allows you to accept imported fees and allocations into Cogency Cogency Software, Inc. Page 4 of 6

5 Portfolio Reconciliation Cogency s Portfolio Reconciliation tool automates the verification of portfolio values in Cogency against the portfolio values in an Excel worksheet. It points out discrepancies in trades and valuation and allows you to accept imported values into Cogency. Operational controls and deployment Cogency products run on Cogency Wisdom, our patented role-based development and deployment environment which runs on Microsoft Windows, accessing a Microsoft SQL Server database. Cogency Wisdom has many built-in operational controls and security features. Secure Access Control Set up any number of Roles, Menus, User Profiles an Access Control schemes, to define the security levels that you require. Limit funds and investors to the people who have the authorization to access them. Define internal fund-families to segregate one client s funds from another s. Configurable Views Use Table Calculators to tailor each screen to your needs, sorting, rearranging, hiding columns, creating new calculated columns, subtotals, and groupings Save complex search criteria using Filter Builder Reporting All on-screen tables provide instant Excel export. All screens generate beautiful customizable PDF and HTML reports User Interface Windows Desktop Wisdom Browser based Web Wisdom Deploying Cogency Cogency Fund of Hedge Fund Insight runs at the Fund Administrators location, where you do all the back office accounting. To create a truly sticky relationship with your clients, put Cogency Investor Insight and Portfolio Wisdom on their desktops! Cogency Software Administrator can host the client-specific database (CRM, manager due diligence, etc). Provide your client with access to Cogency: Through the web, using Cogency Web Wisdom Via Citrix, using Cogency Desktop Wisdom Clients can run their own instance of Cogency in their own office, which stays current with accounting data from you, their Administrator, in one of these two ways: Your data data is automatically downloaded into your client s database; it is transparent to your client. Funds who use Cogency to run shadow accounting use Cogency s reconciliation tools to compare data in their local version of Cogency with your data that Cogency automatically downloads when you confirm its readiness. Cogency Software, singularly focused on the fund of hedge fund industry, today develops, deploys and supports leading edge portfolio management, accounting and investor relations solutions that help mitigate operation, compliance and reputation risk at many marquee funds worldwide. Cogency began in 2002 with a mission to build a state of the art application development platform, and to use that platform to build industry specific products. Through extensive experience consulting with 2009 Cogency Software, Inc. Page 5 of 6

6 hedge funds and funds of hedge funds in the early days, Cogency Software gained an intimate understanding of alternative investment operations and their information management needs, and over the subsequent years, applied this industry insight to create a targeted product for funds of hedge funds. In the course of doing so, Cogency also completed its now-patented Cogency Wisdom platform, an enterprise-scale application development and deployment platform that is the core technology behind every Cogency business application. Cogency headquarters are in Burlingame, CA, where it draws on the Silicon Valley pool of top-tier technologists who design and build both the platform and the applications. Cogency s New York and Los Angeles offices house its team of accountants and customer-support specialists who provide implementation, training and support services to Cogency s clients. Call today to discuss how Cogency can help you create long lasting relationships with your fund of hedge fund clients. Cogency Software Headquarters Client Services and Support 500 Airport Blvd, Suite Lexington Ave, Suite 1736 Burlingame, CA New York, NY Cogency Software, Inc. Page 6 of 6