CAfIT Ltd - the specialist UK-based Fixed Income, Derivatives and Balanced Fund software provider, has announced the launch of a brand new Analytics Engine, augmenting its comprehensive suite of sophisticated portfolio management solutions. The Analytics Engine joins CAfIT's market-leading FIPA analytics portfolio management and modelling solution, which is widely deployed by leading international asset management institutions.
CAfIT's Analytics Engine provides a centralised valuation and analytic calculation engine with comprehensive asset class coverage, reflecting the central role played by independent valuation and analytics in strategic investment decision-making and helping to reduce operational risk. The Analytics Engine fulfils a vital risk assessment function by providing valuation, exposure and risk on all asset types. The calculated valuations and analytics are published to the CAfIT database, stored and can then be distributed to the rest of the organisation to provide a true and consistent firm-wide valuation and analytical view of every asset, in line with the concept of a "firm-wide valuation". This means that complex derivative products can be used within systems such as OMS and compliance, which do not have the native support for the asset type, without compromising the accuracy of the valuation and risk. The Analytics Engine also supports the UCITS III requirement with its ability to re-price assets dynamically, thereby ensuring that investment decisions are made on accurate, timely information as opposed to out of date, start of day analytics. 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.
The Analytics Engine represented a logical development in support of the existing CAfIT portfolio, as CAfIT's Products Managing Director, Jem Tugwell explains:
"Analytics rest at the very core of investment decision making, and there is a clear operational risk if the same assets are valued and treated differently by diverse systems and departments throughout an organisation. With the move towards centralised data for positions, prices and benchmark, we recognised that many firms now require access to independent valuations and centralised analytics. Unlike other financial software providers, we believed that it was important to develop our own solution. Data centralisation is an important strategy, complementing the function of Front Office modelling systems to re-price asset and derivative positions dynamically. By developing the Analytics Engine, we are able to deliver some tangible key benefits. Firms can now access full valuation, analytic and exposure calculation, including derivative valuation and curve based exposures, as well as being able to distribute the analytics to provide a consistent firm-wide view. Our clients can also be confident that their investment in our solutions is being maximised."
The CAfIT Analytics Engine support currently includes 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 - Capital Index, LPI, Real Annuity, Year on Year, Zero Coupon , CMS, CMT, Spreadlocks, Repos, Futures - Bond, index, stir, Bond Options, Equity Options, Equity Futures, Unitised with look through and more.