HM Trust AG (HMT), an asset management company belonging to the HanseMerkur Insurance Group, is using XENTIS by Profidata to strengthen its portfolio and risk management processes. HMT implemented the Swiss
software solution to standardise not only internal work processes in portfolio and risk management, but also external trading and reconciliation procedures.
Following completion of the implementation project, HMT is able to optimise investment processes primarily in the front and middle office, greatly increasing efficiency. The key reason why the changeover has proved so successful is that XENTIS Front Office ensures the availability of current portfolio data, continually taking into account all events, such as trading transactions, corporate actions and price changes, and functions as an Investment Book of Records (IBOR).
HMT manages mandates with the aid of model portfolios and overlays, which, for example, ensure compliance with minimum fund price limits, while performing simulations to subject net asset values to a stress test based on different market scenarios. For optimum control of exposures, HMT uses the XENTIS Excel module to replicate the quantitative model. This allows simple and efficient data transfer between XENTIS and Excel. All trading decisions undergo pre-trade compliance checks before being automatically transferred to the order routing system. XENTIS is connected to the Bloomberg EMSX and TSOX trading platforms via the FIX network. Communication with brokers, capital management companies and custodians is predominantly granted through SWIFT. HMT also uses the XENTIS reporting module and the XENTIS data warehouse for high-quality customised reporting.
Raik Mildner is Chairman of HM Trust AG and member of the Management Board of the HanseMerkur Insurance Group. Asked about the choice of XENTIS, he explains: “We needed a modern and flexible software solution to implement and expand our business model. After evaluating a number of alternative systems, we chose XENTIS as the central application for HMT’s investment management. The excellent working relationship we enjoyed during the project and the fact that implementation was delivered successfully and within budget confirm our impression that, in XENTIS and Profidata, we have found not only the right solution but also the right partner.”
“We at Profidata are pleased that XENTIS, with its broad functionality and extensive configurability, meets the complex requirements of HMT in portfolio and risk management. Our partnership with HMT takes us further along the road to sustainable growth in the market segment of asset management and insurance,” says Roger Wildi, CEO of Profidata AG, who is pleased to have won the confidence of HM Trust AG, thereby adding another respected asset manager to his clientele.
HM Trust AG (HMT) is a non-bank financial services institution based in Hamburg and approved by the Federal Financial Supervisory Authority (BaFin). The company was founded in the summer of 2009 and belongs to the HanseMerkur Insurance Group. Since it was founded, HM Trust AG has provided services exclusively to institutional investors. These include insurance companies, foundations, pension funds, accident insurance providers and private-sector enterprises. It currently manages over EUR 8.5 billion through asset management mandates.