Investment Limit Monitoring

  1. Investment Limits

Compliance and Operational Rules Engine

Staying compliant with investment restrictions and limits is a complicated and resource-consuming process without proper tools.  Continuously changing regulatory requirements combined with restrictions coming from investors or fund prospectus’ are hard to comply with using manual Excel-based solutions. 

Depowise monitors and prioritizes potential and active breaches within the applicable legal and regulatory framework, while applying all rules defined by your fund prospectus. 

Investors Register for AIFMD Depositary Banks

Depowise Investment Limit Monitoring provides a configuring engine to design rules that verify portfolio compliance. The system comes with a set of predefined UCITS directive rules to get you started. On top of that, users can build additional rules based on restrictions stipulated in Fund prospectus or investment agreements. There are various configuration options available (e.g. thresholds, approved instrument categories, holding limits, counterparty risk, exposure limits and many more). 

Depowise Investment limit monitoring can be implemented in two ways – (i) post-NAV verification of investment limits; (ii) real-time investment limit monitoring as a supplement to the Depowise OMS.

Investors Register for AIFMD Depositary Banks

Post NAV Verification

In case of post-NAV verification process, Depowise will use the end of day portfolio structure, closing valuation data, and securities master data to verify compliance with investment limits. A typical business case is to execute independent checks on outsourced operations.  

Real-time Monitoring

If Depowise real-time investment monitoring is implemented in conjunction with our OMS, the system will check investment limits continuously, in real-time when new information becomes available – new orders, new trades, updated market prices, updated TA information. Depowise highlights and prioritizes potential and actual (active/passive) breaches. If an order potentially breaches portfolio restrictions, the trader will not be able to process it without receiving additional verification or approval from the Fund’s compliance officer. The compliance team will be able to define soft restrictions that will highlight actual positions dangerously close to breaching hard limits of the portfolio. Model portfolios can be verified as well before the rebalancing of the fund is executed.

Investors Register for AIFMD Depositary Banks
Investors Register for AIFMD Depositary Banks

Reporting and Dashboards

Investment limit monitoring includes configurable reports that improve trading efficiency, measure and benchmark trading related costs. 

Our dashboards allow users to seamlessly deal with active breaches, supply additional documentation, configure rules and/or create fund specific securities master entries to avoid false-positive breaches, visualize business metrics, create custom reports and workflows, etc. 

All changes to active rules and actions taken to mitigate breaches are registered in the Depowise audit log. You will be able to follow up on your actions if you need to provide official logs for internal audits or to regulators. 

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Want to see the benefits of using Depowise with your own eyes?

Give us two weeks and we will use the data from one of your funds to create a solution. Interested? Send us a message and we can start now.

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