Portfolio management





Efficient portfolio management with Escali Financials

Escali Financials helps you manage investment portfolios in a simple and efficient way, reducing time spent on portfolio administration. The system is compliant with international requirements for investment management by pension funds and insurance companies.

Comprehensive reports are included for management reporting. These have advanced visual elements and full drill-down features. Detailed information can be extracted to meet requests for information from your auditor or Financial Services Authority. Underlying data and audit trail information give you transparency and control.





Efficient trade registration

 

Trades in all types of financial instrument are registered with ease.

Large batches of transactions or discretionary mandates can be easily imported from transaction lists provided by the broker or the key account manager. All transactions are automatically posted and transferred to your accounting system upon approval.

 

Interest rates are automatically set for floating rate securities and interest rate payments are posted on an ongoing basis. The system also calculates and posts accrued interest and unrealized gains and losses

Automatic update of market rates and key security data

Whilst it is possible to register market rates and refernce data manually, for listed securities these can be automatically imported from data suppliers such as Bloomberg, Infront, Thomson Reuters etc. It is also possible to import refrence data from Nordic Trustee/Stamdata.no or fixed income security rates from Nordic Bond Pricing.

Derivative and fixed income security prices can be calculated in the system according to modern financial theory.

Simple, dynamic reports with great visual elements

The system includes many standard reports in addition to dynamic and interactive reports/dashboards. These reports can be easily adapted by the user. Stakeholders (such as board members) can be given read-only access and log in via a browser to view the reports.

 

Customised for European reporting requirements(Solvency II, EIOPA and ECB)

Pension funds and insurance companies across Europe must adhere to strict reporting requirements from EIOPA and the ECB.  Solvency II regulations also require solvency capital requirements (SCR) to be calculated in a prescribed manner. Escali abides by these regulations and our systems are tailored to meet the requirements. They contain all necessary fields for reporting and SCR calculations and are continuously updated for ongoing changes in these regulations. Escali has a pensions and insurance team with specialist expertise in this field. We follow the regulations continuously. The portfolio system integrates seamlessly with our reporting solution, Escali Supervision, although both systems can also be used independently.

Escali integrates with the accounting system.

With Escali Financials, you have a full audit trail in connection with all financial transactions. The ledger accounts are generated from a flexible accounts setup which the user can adjust. Once transactions are approved, the entries are transferred to the accounting system. There is a one-to-one relationship between the vouchers generated in Escali Financials and vouchers in the accounting system, so that all transactions and postings can be documented down to the last detail if required.

As the system is cloud-based, auditor, advisors or others can be given access to the data as required. Accrual items such as  accrued interest, unrealized gains and losses, agio and amortisation are automated. Gains are calculated using the FIFO and average cost methods, and the system keeps a full record of the FIFO order for all trading positions.

The system is supports international accounting standards (IFRS)and data for accounting notes can be easily obtained.

Calculation of returns and analysis

The system calculates returns in line with modern financial theory and fulfills the requirements for return measurement and calculation described in the regulations for pension funds and insurance companies. The return can be calculated by either time-weighted and modified Dietz methods.

 

Return compared to benchmarks by analysed by entering the benchmark for various asset classes or for the entire portfolio. User-defined benchmarks can also be built according to the company's allocation strategy or based on a combination of underlying indices. This allows easy tracking, analysis and reporting of the relative returns.

Attribution analysis can pinpoint whether there is areturn in excess of benchmark and if so, whether it is triggered by allocation, selection or interaction between the various asset classes. The system also calculates risk measures such as standard deviation, CAPM beta, information ratio, Sharpe Ratio, Tracking Error etc.

Investment strategy monitoring

Our risk management tool monitors and reports the degree to which allocation and other requirements are met compared to the business strategy. Groupings based on asset class, region, rating etc can be easily defined, and can be given a strategic weight, maximum and minimum limits, as well as associated benchmarks.

Stress testing of market risk based on Solvency II SCR requirements is straightforward

The system includes functionality to carry out market risk stress tests on the company's investment portfolio. In addition, the data for the counterparty risk calculation is extracted and the exposures through bank deposits and derivatives are aggregated.

If the company is exposedto derivatives, either directly or via funds, then the system can calculate their impact on the different types of market risks and provide an overview of their risk-reducing effect which also affects counterparty risk.

It is possible to import fund content and calculate market risk based on full fund look-through. The stress test model in Escali Financials gives you access to a results down to individual security level for funds.

A cloud solution gives flexibility to grant access to others

Escali's solutions are delivered as a cloud service, so the users log on via a web browser. Advisors, consultants, auditors, actuaries, etc can also be granted access and assigned roles so that everyone works in the same system. This can give a highly efficient workflow, preventing duplication and sub-optimisation.