Outsource Service Supplier Project Profile

Key Challenges

A $30B international equity manager that found their investment operations staff growing at a faster rate than their AUM and revenues engaged InvestTech to identify a list of potential outsource service suppliers to provide post-trade execution services. The primary driver behind outsourcing was the settlement complexity of the foreign equity component of their portfolios, which led to inadequate corporate action data, the need to multi-source reference data and significant reconciliation and cash management issues.

InvestTech Solution

InvestTech utilized a proprietary database of outsource service suppliers to align critical functional and technical client requirements with vendor offerings. InvestTech continually updated database details outsource firms’ capabilities in the areas of reference data management capabilities, corporate actions solutions, broker and custodian communications, trade settlement and trade support services, risk measurement reports, reconciliation, post-trade compliance, as well as internal and client reports generation / distribution capabilities. InvestTech assisted with issuing a request for proposal, evaluation of the responses, due diligence and recommendations for contract fees and service level negotiations.

Results

InvestTech’s project assistance led to the selection of a stable and reliable vendor that offered the capabilities the client required at a favorable cost-benefit ratio and InvestTech was able to provide guidance and planning advice in the best interest of our client to ensure a smooth transition of the specific services.

Why InvestTech?

Integral to the success of this project was InvestTech’s database of provider offerings which gave our client a clearer view of how the major outsource providers in the electronic trade communication space stack up against one another. This comparison was a critical part of the outsource service decision and a primary reason the client relied on InvestTech for this important effort.