Financial Tradeware, provider of portfolio and fund management straight through processing (STP) solutions for investment managers, fund managers and hedge funds, has successfully implemented its H-Fund product at European Investments Management Ltd.
EIM is an Open Ended Investment Company (OEIC), part of the Dharma Group, a small hedge fund based in the Bahamas. In order to free up time and focus resources on delivering greater returns, EIM has selected and implemented Financial Tradeware’s H-Fund to manage all front, middle and back office trading activity.
“Our objectives were to take advantage of the latest developments in financial technology to streamline investment operations, internal administration, and regulatory compliance and to reduce costs to the lowest possible level. H-Fund supports our sophisticated investment strategies and the creation of a sufficient scale to appropriately manage investment risk,” says Gianfranco Lande, CEO, EIM.
EIM is a typical small hedge fund. The strategies the fund managers follow may involve the purchase and sale of stocks, bonds, options, futures contracts and money market instruments. Where securities are purchased on margin, the lower the trading costs, the smaller the margin required before the trade is profitable. The cost-effective nature of H-Fund ensures that the gains to be made from small rises in stock are not cancelled out by large operational and transaction costs.
EIM takes advantage of the fact that H-Fund can be administered with relatively little manual intervention, thus minimising costs. If costs are kept down and there is a high rate of STP it contributes to raising returns, in line with the absolute objective to increase the net asset value of the fund.
“Financial Tradeware has built a deep understanding of the needs of the hedge fund industry, trading strategies and the asset classes. We are uniquely positioned to support hedge funds; via Europenne de Gestion Prive we can provide SWIFT connectivity and with H-Fund, we can provide a full front to back office trading system with a small system footprin,” says Graham Bright, managing director, Financial Tradeware.
“We have found H-Fund to be an innovative, cost-effective front, middle and back office trading platform. It supports our broad ranging trading strategies and allows EIM to maintain high rates of STP, keep costs down, boost efficiency and reduce our operational risk. It gives us the ability to automate each stage of the trade life cycle from the point of capturing the trade straight through to settlement over a variety of networks and systems,” adds Lande.