Aspect Capital Limited (Aspect), one of the largest hedge fund managers in Europe in terms of assets under management, has gone live with SimCorp's IT/2 treasury management system.
As a result the business is now enjoying enhanced cash control and flow of management information. The system is in use both to manage cash within fund portfolios and for treasury control in the corporate entity.
Aspect, which manages alternative investments of $2.9bn across a range of funds for clients worldwide, sees treasury control as a strategic requirement. "Aspect definitely shows farsightedness as a company, for even though its treasury has just recently made a step-change, Aspect are planning ahead to ensure that the current set-up provides the environment for future significant changes in complexity," says Eileen Tindall, independent treasury specialist, who has been consulting at the firm.
An example of Aspect's changing treasury requirement is in foreign exchange risk management, where the establishment of subsidiaries in Switzerland and the USA has introduced more complexity. "By implementing a tms we were not trying to save headcount or cut costs, but looking for a greatly improved control environment," explains Tindall. "Controls are the basis for future growth - without controls in place, growth can't happen."
Aspect Capital selected the system through SimCorp's IT/2 Choice option, whereby a free two month trial period is available and the system is offered with no initial licence fee. "The IT/2 Choice proposal was appealing. It meant that the benefits of a tms could be seen within a company that hasn't had such a formalised approach to treasury before. In this respect it's especially helpful that IT/2 does not have the overcomplicated set up of other systems," notes Tindall, who has experience of several other solutions.
Corporate and fund cash as well as all treasury dealings are now managed in a single integrated database, eliminating the risk of spreadsheet errors and providing a detailed audit trail for all transactions. Tindall especially likes the Treasury Process Maps facility within the software, which provides an interactive graphical layout of treasury operations. "It's an excellent tool - very simple but very helpful. It makes a big difference when you are trying to take someone through the business flows, because it clearly shows how these have been organised."