As part of its ongoing prudential commitments, APRA reviews aspects of unit pricing practice and ascertains how product providers assess and comply with their unit pricing obligations. In its last review of market practices APRA highlighted a number of issues relating to calculation errors and summarised that when errors arise they tend to be very large and subsequently very costly.
The introduction of DSTiâs Unit Pricing Workbench, as part of its HiPortfolio/3 Investment Accounting Solution, allows institutions to proactively manage unit pricing output on an Ã¢â¬Ëexceptionâ basis throughout the pricing lifecycle. Progress can then be monitored on a real time basis.
According to DSTiâs CEO Australia, Ian Mathieson, âThis enhancement is designed for clients who manage unit trusts for investors as well as those who provide a custodial service for unit trust managers in accordance with APRA's recommendations. Essentially the Workbench, amongst other things, allows you to create and maintain a benchmark index and measure the performance of a unit trust against that benchmark index Although this has been initially launched in the Australian market, the key aims and objectives of this solution clearly has global application â
The major improvements for DSTiâs existing HiPortfolio clients implementing the Unit Pricing Workbench focus on increased user efficiency and client servicing. The HiPortfolio/3 Unit Pricing Workbench incorporates a suite of business processes designed to provide a consolidated view of unit pricing functions from start to finish.
âInvestors often query the performance of a unit trust and this can take investment managers up to two hours to generate reports. The new Unit Pricing Workbench provides a Unit Trust Variance Report for instant analysis of the unit trustâs assets, once a price is calculated,â Mr. Mathieson continued. âFurthermore any organisation that can provide more accurate, substantiated and timely information to an investorâs queries regarding unit prices is always going to lead in the area of client servicing,â he concluded.
DSTiâs Unit Pricing Workbench has been developed at the companyâs Melbourne-based Research & Development Centre. The solution is available for implementation immediately.
HiPortfolio/3 is DSTiâs strategic transaction processing and investment accounting solution. The HiPortfolio platform is used by over 250 organisations in 35 countries worldwide. Its flexible nature and truly multi-currency and multi-instrument capability allow it to support different types of business on a single system.