CAfIT Ltd, the specialist UK-based Fixed Income, Derivatives and Balanced Fund software provider, announces that Schroders is the first organisation to adopt CAfIT's recently launched Analytics Engine. Schroders is using the product as the core provider of analytics for OTC Derivatives, with plans to expand its role in the future. The Analytics Engine complements CAfIT's FIPA analytics portfolio management and modelling solution, which is widely deployed by leading international asset management institutions.
Matthew Oakeley, Head of Group IT at Schroder Investment Management, explained their rationale:
"We have a significant Fixed Income investment programme underway, and wanted to implement a standalone analytics calculator for OTC derivatives to feed our various decision support tools. We have a long-standing relationship with CAfIT and have been working with them on this concept since last summer. The Analytics Engine is the direct result, filling a clear gap in the market for buy-side derivative applications of this kind. Schroders is excited about the unique positioning of CAfIT's analytics engine, and since going live in December 2006, it has been a significant success."
Implementing the Analytics Engine took place over a number of weeks, with the Schroders' IT team handling the data set-up, synchronisation with a variety of market data plug-ins and the scheduling of in-house accounting and static data. The Analytics Engine feeds directly into Schroders' internal applications, providing a central resource in line with the investment management company's commitment to deliver significantly enhanced Fixed Income analytics to its fund managers. Following this initial success, Schroders plans to provide other product teams with access to the Analytics Engine across other instrument pricing applications, as it has the potential for operation across multiple business areas.
CAfIT's Commercial Managing Director Raquel Elias commented:
"Schroders is a long-standing client, with whom we have an excellent strategic relationship that has been strengthened by this latest development. We are delighted that they have chosen to use our analytics engine as the core feed for their OTC business. Investment businesses must have access to a consistent set of numbers across their entire investment universe if they are to compete effectively, and until now, there has not been a single product capable of servicing this requirement. Our Analytics Engine is a genuine market breakthrough, filling this gap in the market - a fact that Schroders has been fast to recognise. It provides comprehensive access to accurate data, complemented by being extremely easy to use and fast to implement, thanks to the availability of a variety of standard data feed interfaces. CAfIT has a reputation for product innovation - the Engine is a key addition to our product portfolio and a perfect complement to our FIPA solution."
CAfIT's Analytics Engine provides a centralised analytic and valuation calculation engine with comprehensive asset class coverage, reflecting the central role played by analytics in strategic investment decision-making and reducing operational risk. It fulfils a vital risk assessment function, enabling exposure and risk on all asset types to be valued and calculated. CAfIT has designed the Analytics Engine to use the same core database as other CAfIT products, maximising an institution's initial and ongoing system investment. Calculated analytics and returns are published to the CAfIT database, stored and then distributed to the rest of the organisation to provide a true and consistent firm-wide analytical view of every asset, in line with the concept of a "firm-wide valuation". When linked to CAfIT's modelling systems, the Analytics Engine also supports dynamic re-pricing of assets to ensure that investment decisions are made on accurate, timely information as opposed to out of date, start of day analytics.
The CAfIT Analytics Engine currently supports the following comprehensive list of asset types:
Government, Corporate, Bills, Sinking Funds, Step Coupon, Odd coupon structures, Callable, FRNs, High Yield, Brady, MBS/ABS, Prefs, Convertibles, Cash, FX, Money Market - CD, CP, Loans, Depo, CDS - Single name, Index (ITraxx), Basket, Swaps - IRS, Asset swaps, Inflation swaps, CMS, CMT, Spreadlocks, Futures - Bond, index, stir, Options - Bond and Equity, and Unitised with look through.