Introduction

In the dynamic realm of investment management, alternative investments have gained prominence for their potential to diversify portfolios and enhance returns. Recognizing the unique challenges associated with these assets, the integration of Accelex and SimCorp Dimension® takes center stage, offering a suite of features tailored to revolutionize the management of alternative investments.

SimCorp and Accelex are strategic partners, and Axxsys partners with both, so we have a unique position to enhance and develop the way these platforms integrate, and ensure manual workflows are optimized.

In this article, we delve into the transformative integration between Accelex and SimCorp Dimension, showcasing how this partnership revolutionizes alternative investment management. Within this synergy, we disclose several features and functionalities that will optimize the way you handle your financial operations. From automating cash flow processes of unstructured data within the domain of alternative investments, to reinforcing security through a robust 4-eyes approval system, and facilitating real-time data transfers with enhanced security, ending in seamless NAV updates. This integration offers a comprehensive solution that empowers you to manage your investments with precision, efficiency, and confidence.

Maximising the Accelex / SimCorp Collaboration

Here, we present some key insights, exploring how this collaboration can enhance your investment management strategies.

Accelex – SimCorp Dimension Business Flow

Streamlined Cash Flow Management

Alternative investments, such as private equity and hedge funds, often involve complex cash flow structures. The Accelex platform enables automatic upload of Limited Partner (LP) cash flow statements through data hubs or manual uploads of individually addressed cash flow statements. These include capital calls and distributions, specifically designed to reflect cash movements in alternative investments. This feature not only increases timeliness, but also removes manual intervention, and enhances data quality and accuracy, critical factors when managing a large book of alternative investments.

4-Eyes Approval for Risk Mitigation

With alternative investments carrying a higher degree of manual processing compared to standardized assets such as cash equities, Accelex’s 4-eyes approval system becomes paramount in automating document review. Whenever a data point changes from a previous payment to the next, a small notification flag is added to ensure this data is validated. For instance, if the bank account is changed from one payment to the next, this will be flagged, and extra care should be taken to ensure the validity of the payment. This added layer of intelligent oversight helps mitigate risks by subjecting key decisions and actions to rigorous review, ensuring compliance with the manager’s investment procedures.

Secure Data Transfer for Alternative Assets

Data integrity is crucial when managing alternative investments. The integration offers live data flows to SimCorp Dimension through a secure SFTP (Secure File Transfer Protocol) connection leveraging industry best-practice public key infrastructure, safeguarding sensitive information related to payments. The integration features both a secure online archive of files and a local backup to enable investigation and re-processing of payments. These improved features ensure the operation of the solution securely and confidentially.

Real-time Monitoring of Alternative Transactions

Alternative investments require watchful monitoring. SimCorp Dimension’s Message Queue system offers real-time tracking of transaction processing, while the Transaction Status Monitor provides transparency and visibility into the status of alternative investment operations. By implementing an automated flow, admissible data requires no manual interaction. Incorrectly specified static data will trigger manual exception handling, but even in this adverse scenario, full transparency and alerts allow for a faster response. These features allow investment managers to monitor and respond promptly to evolving conditions.

Automated NAV Updates for Alternative Investments

Valuation of alternative Investments should be corrected for commitment changes and cash flows. This is often difficult to optimize since it requires a quick and efficient import of capital payments from unstructured data sources. The implementation of the Accelex and SimCorp Dimension interface allows for automated updating of alternative investment Net Asset Values (NAVs) through the ‘Alternative Investments Market Values and Quotes’ functionality. Thus, from a document that has been reviewed and approved, the NAV adjustments will automatically be captured correctly in SimCorp Dimension. This automation ensures that NAVs for alternative investments include the latest available information, enhancing investment decision-making, calculations & reporting.

Integrating Cash Flows with Downstream Platforms

Upon successfully integrating the Accelex platform, the manager has an up-to-date overview of all upcoming cash transactions. This opens the possibility of integrating downstream payment solutions. This streamlined process simplifies capital allocation for alternative assets and executing the actual payments, enhancing operational efficiency.

Conclusion

The integration between Accelex and SimCorp Dimension presents a modern solution for the management of alternative investments. By addressing the unique challenges of alternatives, including complex cash flows and valuation methodologies, this collaboration enables asset managers to navigate the complex operations of alternative investments with confidence. In a financial landscape increasingly driven by alternative assets, this insight underscores the significance of leveraging the interface between cutting-edge solutions like Accelex and proven platforms like SimCorp Dimension to improve the management of alternative investments.

How Axxsys Can Help?

Axxsys is uniquely positioned to assist clients in harnessing the full potential of the integration between Accelex and SimCorp Dimension for their investment management needs. Our team of experts specializes in technology implementation, ensuring a seamless and efficient integration process. We offer tailored feature development to meet the specific demands of alternative investments, helping clients maximize the capabilities of this powerful collaboration.

If you would like to discuss how we can help maximize your Alternative Investment on your investment management platform, contact one of our experts, Jakob Banning, Senior Manager at Axxsys Consulting at jbanning@axxsysconsulting.com.