Funds are attractive to investors because they provide exposure to differentiated strategies and new geographies. However, holding funds can complicate an investor’s ability to manage risk, measure performance, and comply with global regulations such as Solvency II Pillar 3.
Managing fund holdings requires the ability to look through to underlying securities. For large portfolios, mangers often need access to multiple levels of holdings across a range of investment vehicles.
As funds become a more popular investment, organizations are eager to learn how they can evaluate performance, risk, regulatory guidelines, and more. To help organizations holding funds manage them more effectively, Clearwater launched Fund Look-Through capabilities in June 2020.
Our Fund Look-Through solution solves common challenges associated with managing funds such as:
Automated Data Aggregation: Look-through data is automatically aggregated from fund managers and third-party data providers. Next, the system enriches underlying member securities to bring our users a clean data set that is updated daily.
Fund Transparency: Users can view aggregated data at a pre-look-through level and seamlessly switch their view to a more detailed, post-look-through view that include underlying securities. Our solution also allows for multiple levels of look-through reporting for fund-of-fund investments.
Integrated Reporting: Balance sheet reports contain both directly held assets and member securities in the same view. Users can run consolidated risk exposure reporting across various attributes, including currency, sector, and ratings at a look-through level.
Regulatory Reporting: Clearwater’s solution provides support for standard Solvency II Pillar 3 QRT – S.06.03 and actuarial data requirements for Solvency II Pillar 1 market risk module on a look-through basis helping reduce SCR capital charges.
Clearwater is dedicated to solving challenges associated with investment accounting and reporting. To learn more about our Fund Look-Through solution, click here.