In the case of this multi-billion dollar investment manager, the variety of asset classes ranged from the plain vanilla to the completely exotic: equities, bonds, credit default swaps, bank debt, trade claims, physical assets, collateralized loan obligations, ABS/MBS, and private warrants were all held at some point in the portfolio. Complicating matters further were the variety of fund structures used by the investment manager. In addition to traditional hedge and private equity funds, a variety of special purpose vehicles (SPV’s) and tax blockers were used as additional entities to service the portfolio.
As any multi-strategy fund can appreciate, consolidating reporting across a variety of asset classes can be a challenging task. An even greater challenge, perhaps, is finding a fund administrator with a background and expertise in such a wide variety of securities and assets. To this end, the investment manager turned to MUFG, consistently known for providing customized and creative solutions to their clients.
To start, MUFG created a variety of custom reports for use by the client, including portfolio and fund accounting outputs as well as bespoke investor statements. A custom workflow was also created to align the operations of the investment manager with the fund accounting team at MUFG. Finally, to augment the client’s personnel, MUFG placed staff directly in the investment manager’s office, further streamlining the daily reporting process.
These customized solutions allowed the client to improve their operational efficiency, decrease the turnaround time of reporting to the front office, and led to direct and indirect cost savings for the management company. In addition, and perhaps most importantly, this outsourced solution simplified the investment manager’s business model, allowing for the internal focus to be on what matters most to investors: portfolio returns and risk management.