An Administrator manages money invested in Trusts. Contained within these trusts are one to many underlying investments. These investments can be held with any of the many fund managers, stock brokers or investment advisers etc.
Every quarter, six months or annually, the investments produce valuations. Because these valuations come from various different sources, there is no uniformity in their frequency or format.
What the user does at the moment is simply to scan the valuations, save them against the clients’ electronic file.
There is currently no check by the administrators to see if there have been any significant changes in the investments’ performance i.e. they do not look at the last valuation and compare it to the current one and see if there is anything in the performance which should trigger an action e.g. they contact the investment adviser responsible for that particular investment and find out the reason for the sudden change in value.
However they do have a responsibility as trustees to ensure that the underlying investments are appropriate for the clients/settlors, hence the reason for them asking for this piece of work.
What I’m looking for is a system whereby the administrator can simply type in the latest valuation, the system compares this to the last value and gives a percentage rise or drop in value. They can then make a judgement call as to whether this is an acceptable tolerance. In the first instance they intend to contact an in-house investment person to sense check the investment and as a second step, contact the investment adviser.
It’s worth bearing in mind of course that there may be a legitimate reason for a rise or fall in an investment e.g. performance, withdrawals or additional investments etc, but the point is that it’s highlighted and a file note is produced to say that this has been noticed, enquiries have been made and that they are satisfied that the rise or fall is within the parameters of the client.
The system should not only have the capability to calculate the difference in valuations but also have a field whereby the clients’ risk profile can be entered.
What this should do is determine the parameters within which rises and falls are acceptable i.e. if the client is for example a low risk investor (2 on a scale of 1 – 10, where 1 is ultra low risk) and the valuation shows a 10% annual drop then this should be flagged as outside of the investment parameters of the client. The intention would be that as part of creating this system, an acceptable tolerance is added so that the higher the risk profile of the client, the broader the tolerance for increases & decreases in values e.g. low risk = anything outside of a 3% annual shift should be flagged etc. Full rules will be provided.
The system should also have the functionality for the administrator to enter any additional premiums paid into the investment since the last valuation, and also withdrawals, as this will of course affect the perceived performance of the investment and needs to be built into the risk/tolerance calculation.
What I’d ideally like to produce is a simple system which looks good and contains the above functionality. A nice front-end would be great, which can be easily branded to the bank and be user-friendly etc. requiring a minim of keystrokes to look up and update valuations when a statement arrives in.
The result should be scalable so that multiple users can be accommodated in the long term.
I'd rather someone working on this had carried out previous work on similar software.
I will provide a more detailed specification next week. If you can do but over budget please quote anyway.