The administration of private assets is considerably more complex than for UCITS funds, and the operating models of those firms involved in the production of reports, prospectuses, factsheets and financial statements is less ‘industrialised’. This is due to investment and related data points underpinning the production process being less standardised and thus requires more manual effort in all components of the value chain: the investment management process, valuations, investor servicing including commitments and drawdown, the NAV calculation, and finally investor and regulatory reporting.
On reporting requirements, funds typically have to distribute quarterly reports to investors, periodic regulatory reports to national authorities such as the CSSF, and produce legally required documentation such as annual reports. The production process for these reports is typically highly manual, time consuming and carries a significant risk of errors slipping through the net that can lead to financial and regulatory censure.
Here at Nadi Solutions we have developed a cutting-edge RegTech solution that helps firms to overcome these challenges. nadi is a SaaS platform that has been designed from the ground up to help firms achieve a high level of automation when it comes to the generation of private asset fund documents and reports. By removing the need for manual intervention from the end-to-end production process, everything from the collection and validation of data, computation of all sections and statements, to the layout and format of the reports is automated.
As a result, nadi enables users to focus solely on the verification of the production process results, assisted by an inbuilt standardised control framework, user-defined workflows, and real-time, exception-driven graphical dashboards.
There has been a commonly held view that the automation of private asset fund reporting is not possible due to the diverse nature of client-specific reporting and underlying investments, which has resulted in a drive to outsource reporting to specialist external service providers. Those firms that have gone down this path, however, typically have found that their production costs are significantly higher that expected, and still require the assignment of dedicated internal teams to coordinate the production of reports with the external service provider.
nadi helps firms to meet their reporting requirements without the costs and effort associated with outsourcing. For example, with client-specific reporting, nadi provides firms with the flexibility to standardize the structure of text, data and graphics and readily customise the layout for each client/investor.
As the growth of the private asset industry is expected to increase with the retailisation of the market, it will face heightened facing regulatory and investor pressure to reduce fees. This margin squeeze is forcing firms to review their operating models to reach a much higher level of process industrialisation in order to reduce their administration costs and improve operational efficiency.
Using nadi it is possible to fully automate the production of reports - that’s what nadi does.