Buy side investment managers face tough challenges to improve returns and reduce costs. To achieve these objectives, firms are using new asset classes, derivatives and emerging markets. However, inflexible legacy systems are often unable to handle these new demands. In addition, a patchwork of different systems is generally used for front office portfolio analytics and middle office risk. The critical downside to this approach is that the front and middle offices have inconsistent data, analytics and reports, requiring significant effort on daily reconciliations.
FINCAD F3 enables the buy side to meet their challenges with the best-in-class solution for enterprise portfolio and risk analytics, allowing firms to price and value virtually any instrument, consolidate disparate systems, and centralize data and analytics across the front and middle office. In addition, FINCAD F3 is ready to go with a standard set of pre-configured models and instruments, and is easily customized and integrated to existing data sources and applications. These powerful capabilities and swift implementations result in rapid ROI for clients.
A senior portfolio manager at a leading UK pension scheme said, “F3 is the most flexible valuation and risk analytics solution on the market. The ability to develop and implement highly tailored hedging strategies and produce intra-day risk has been extremely valuable.”
FINCAD’s innovations in portfolio and risk analytics have not gone unnoticed. FINCAD was recently named “Best Derivatives Valuation and Risk Solution” at The Hedge Fund Journal Awards 2018, and experienced strong sales growth in 2017 with 17 F3 sales deals. New F3 clients in 2017 include leading hedge funds, asset managers, life insurers, regional banks and public sector lending institutions across North America, Europe and LATAM.
“Working closely with both our buy and sell side clients, we have built FINCAD F3 into a powerful portfolio and risk analytics solution for making better investment decisions” said Bob Park, FINCAD President and CEO. “Firms no longer need to choose between an off-the-shelf system with black box analytics or a customized solution that takes forever to implement. With FINCAD F3, firms don’t need to compromise. They get powerful out-of-the-box functionality, the flexibility for unlimited customization and are able to satisfy the competing demands of quants, portfolio managers, traders, risk managers and developers.”
FINCAD F3 is an enterprise portfolio and risk analytics solution that offers the built-in functionality and ease of use of off-the-shelf software, combined with unlimited flexibility to customize it to a firm’s specific trading style, business model and workflow. The enhanced FINCAD F3 solution offers users the following capabilities and benefits:
- Expand into more instruments and asset classes with a comprehensive library of industry standard tools and models. F3 provides unmatched flexibility for building custom curves and valuation models, and an unlimited ability to create tailored analytics with new Python MicroServices.
- Improve returns with the freedom to trade what, when and how you want—with no constraints, and make better portfolio and hedging decisions with accurate valuation and comprehensive risk reports in the intuitive F3 WorkStation application. Key reports include Greeks, Sensitivities, What-if analysis, Cash flows, Mark-to-market and P&L attribution.
Risk and Reporting
- Improve risk management with a complete view of performance and risk across the firm with a comprehensive set of intra-day risk reports that can be easily customized. Key reports include VaR, Expected Shortfall, Stress testing and Scenario analysis.
- Achieve rapid ROI with fast implementations and scalable technology that can be deployed on premise or in the cloud. Integrate to existing data sources and systems with powerful APIs, and use multiple front end applications including F3 WorkStation, Microsoft Excel, or an in-house application. Market data, reference data, analytics definitions and derived data are all stored in a managed database, with versioning and a full audit trail.
FINCAD is the leading provider of enterprise portfolio and risk analytics for multi-asset derivatives and fixed income. An industry standard since 1990, our advanced analytics, flexible architecture and patented technology enable financial institutions to make better investment and risk decisions. Our goal is to provide our clients with solutions that help them achieve their goals, with no compromises. Clients include leading global asset managers, hedge funds, insurance companies, pension funds, banks and auditors. For more information, visit www.fincad.com.
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