Fully integrate basket management services with ETF accounting operations
Multifonds offers a highly automated, facilitated and controlled platform to manage portfolio composition files (PCF) and custom baskets at scale.
Ability to generate the basket in a highly automated manner.
Multiple areas of flexibility including substitutions/rounding.
Full consistency with the core underlying portfolio accounting records, market data and pricing.
Automated projections of corporate actions, accruals and projected price adjustments.
Workflow and controls supporting the basket lifecycle from estimation to creation/redemption order and settlement.
Key benefits
Highly Automated Basket/PCF Creation
Baskets and Portfolio Composition Files automatically created from ETF portfolio weights, underlying index or Issuer portfolio. Automated PCF creation workflow from estimated to trading to settlement baskets. Algorithms optimise cash component. User defined rules automate substitution of cash and securities
Guaranteed Consistency
Basket and PCF are based on a dedicated Estimated NAV – all events, projected corporate actions and accruals, trades and capital activity are incorporated into the basket calculation.
Flexible Basket/PCF Maintenance
Unlimited custom baskets may be created on agreement with authorised participants at the fund or share class level. Automated schedules for security/cash-in-lieu replacement. Components can be overwritten with automatic recalculation of the basket value. Ability to freeze a basket for user defined periods of time. Automatic adjustments to basket positions to meet local market lot trading and rounding rules
Exception Management
Automated exception checks based on cash, security and market movement risk criteria. Basket-to-fund reconciliation of shares, basket components, corporate action adjustments and market value
Reporting and Data Extracts
PCF data is available at any time for extraction and API enabled integration. Flexible formats available (xls, csv, xml, etc.)
Accounting
Alternative lot liquidation method for AP redemptions to minimise capital losses on in-kind deliveries. Integrated in-kind creation and redemption transaction processing
Multifonds is very proactive when it comes to looking at what’s happening across our markets. This is very unusual. Most tech providers only focus on the specific implementation they are working at the time. But Multifonds is always looking to bring us new opportunities.”
Joanna Chuda, Head of Fund Accounting at Alter Domus
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