In its latest strategic move, Analec, a leading provider of financial technology solutions to the global investment research and investment banking industries, is building on its already established franchise in Asia through a U.S. expansion.
ANALEC is spearheading the U.S. introduction with its ModelViewer fundamental analysis platform, which is the first in a suite of services for U.S. traditional and hedge fund portfolio managers and traders.
Currently, ModelViewer comprises the top 300 listed companies in Asia (excluding Japan). Coverage will raise coverage to 500 over time. Asia as an asset class is expected to grow in its significance over the next decade as evidenced by accelerated GDP growth performance (significantly above OECD averages), thereby mandating a focus by U.S. investment managers as they seek opportunities to generate alpha.
ModelViewer closes the gap between fundamental company data and investment decision- making, offering the critical analysis that can make for better informed investing. ModelViewer has been designed to allow its users to focus on the high-value aspects of the fundamental investment decision-making process, while leaving the tedium and resource intensive tasks to the software.
ModelViewer provides fundamental bottom-up financial modeling and forecasting on listed companies. It brings investment professionals all of the research and financial forecasting information that they have traditionally had to assemble into one automated platform. Beyond the productivity gains, the value provided is the ability to come to a decision point accurately and quickly, thereby creating the opportunity to increase alpha. Finally, ModelViewer levels the playing field for secondary and tertiary institutions when compared to relatively "deep-pocket" firms.
ANALEC intends ModelViewer to become a one-stop platform for sophisticated fundamental investors and investment research professionals, as not only do they get to use and manipulate very granular and detailed financial forecast models on a range of listed companies, but also use their manipulated results to run a series of report generation capabilities and investment screening tools (i.e., portfolfolio analytics, valuation screening, sensitivity analyses, graphing and charting capabilities etc.) on the platform, to help their valuation assessment thought process, while in turn feeding their final investment conclusion.
The granular and transparent financial modeling and valuation capabilities as embedded within ModelViewer along with the ability of each user to manipulate the forecasts to best reflect their expectation of future performance at these companies, significantly boosts their productivity and speed of decision-making at both buy-side and sell-side research organizations. Each company model can be used and manipulated by each user as if the model were their own, and after manipulating them, the user can save a personalized version (restricted access to purely the licensed user) or save it locally.
With data consistency and data integrity two key challenges facing the investor marketplace, clear sourcing of historical content along with a completely transparent and granular forecasting methodology for each company ensures such concerns and challenges are suitably addressed. Each historical piece of information used in preparing these "as reported" financial forecast models is tagged to the underlying historical source document and available to each user. All forecasting methodology deployed for each line item is company and industry specific, with a clearly written out forecast methodology document accompanying each company on the platform. In addition, each financial model on the platform undergoes a series of (software-enabled) accounting checks to ensure the forecast models have been built to global hedge fund administrator and operations service provider, today announced the establishment of its presence in the Asia Pacific region.
ModelViewer is available on a subscription basis with each subscriber able to choose a specific list of companies on the system and merely pay on subscription lots. Compared to in-house cost of building such content, ModelViewer is unique in the sense that it does not charge anything for the cost-of-build of the content, but merely charges an annual subscription, that delivers an over 70% cost advantage over the in-house cost of maintaining and updating such content at the customer end.
Commenting on the launch, ANALEC's CEO Indy Sarker said: "The U.S. launch is yet another milestone in our efforts to build ANALEC into a leading technology enabled global service provider within the investment research and investment banking industries. Our expertise in creating such high-value financial content is second to none with the team at ANALEC consisting of top Institutional Investor ranked sell-side analysts and buyside research managers. We have taken our combined 80 years of experience across a range of global investment banks and money managers to develop a best-in-class offering in ANALEC ModelViewer. We are encouraged by the fact that the Asia (excluding Japan) market place for equities pays out around US$20.0bn in commissions annually with investment research related services accounting for 40% of this payout. We believe U.S, managers will reap immediate benefit in deploying ModelViewer."