HSBC Global Fund Services has bought a fixed income performance attribution application from AFA Systems.
AFA says that, with portfolio weightings to fixed income securities on the increase, HSBC needed to offer detailed fixed income analysis and reporting. By implementing the Socrates Fixed Income Attribution application from AFA they will be using a tool already used by a number of fund managers in Europe.
HSBC Global Fund Services sends clients regular performance reports that feature security level relative attribution and risk information. HSBC also advise fund management firms how to comply with GIPS, and offer a consultancy service to assist clients with performance related projects. These performance services are used by over 60 clients who own or manage assets worth in excess of £400 billion.
Socrates Performance Measurement and Attribution will support HSBC’s analytical service by providing reports that include attribution that explains the relative performance at asset class, market or sector level. A security-level option is available that quantifies the impact of the securities held, plus those that are benchmark constituents but not held.
AFA says HSBC selected Socrates because they required a system that offered automation of investment portfolio performance calculation and analysis.
“We have a very strong pension fund offering and are a leading provider to some of the UK’s largest pension schemes,” says Colin Kay, Director Performance Consultancy at HSBC Global Fund Services. “Key deciding factors for schemes choosing HSBC are the speed and responsiveness of our service team. The team is able to use strong technology from AFA Systems to provide excellent service to our clients. Due to Socrates modular but integrated design we have been able to build up our Socrates implementation to match our changing business requirements. With Socrates we have a solution that delivers detailed performance analysis and attribution for both equity and fixed income portfolios, more efficient and timely report production leading to enhanced customer service. “
Jeff Ashbolt, Managing Director at AFA Systems says that Socrates is a comprehensive, scalable performance solution. “AFA Systems has always worked in partnership with its clients, the leading investment organisations in Europe, in delivering functionality to enable them to meet market demands and grow their business,” he says.
Recently HSBC Global Fund Services migrated their existing Socrates installation to an Oracle platform. This will facilitate parallel processing and so increase levels of automation.