By: Mike Megaw & Justin Meagher
Earlier this month, Michael Megaw, Managing Director, SS&C GlobeOp Regulatory and Analytics, hosted a webinar featuring Hans Hufschmid, Co-Founder of GlobeOp announcing the launch of our new FundHub solution. We received various questions around this new offering and although we weren’t able to answer them all during the webinar, we’d like to provide you a roundup of the Q&As.
What safeguards are in place to protect the investor data that is stored?
A Chinese wall exists within the software with various permission levels to prevent managers from accessing information about investors who are interacting with manager profiles. Managers will not be able to actively solicit investors; they can only passively engage with investors by publishing their data. Once an investor sends a manager an “inquiry”, the manager can “respond” to that inquiry, which will begin the dialogue between investor/manager. The investor will always have the power to end the dialogue if they decide to no longer pursue an investment with that manager.
All the database tables in FundHub have a client identification column and each related data access class has a standard process for ensuring that a client identifier is provided for any data query or update. Each page request is authenticated using session data retrieved from the Compliance Admin tool which is populated by a dedicated user management team. Code reviews are conducted to ensure that any system changes conform to the multi-user/multi-client architecture.
Beyond the internal system, SS&C GlobeOp’s web-based portals have a formal technical assessment program where periodic third party security reviews are conducted on our internet facing web applications and supporting IT infrastructure. The portal which is used to deliver FundHub services undergoes an external third party vulnerability assessment on a monthly basis. Additionally, the following controls are in place:
- Strong username/password protection
- Multi factor authentication
- Authorization (roles and permissions)
- Encryption (Https/TLS)
- Segregation of networks (DMZ’s, separation of web server, app server, database, and storage)
- Intrusion detection systems
- Vulnerability and Penetration tests
- Patch management
- Application security: (Secure coding, input/output validation)
- System hardening
- Logging and monitoring
What functionality is available for the fund manager and investor to communicate interest in fund?
The FundHub dashboard allows fund managers to see requests information— populated by investor viewing—and due diligence questionnaires. Managers have real time access to this information. Managers are also able to interact with investors by publishing new information on FundHub. Investors receive notifications when new information is added further facilitating communication.
Can I add my own risk adjusted performance measure to FundHub and add it to the ranking calculation?
Yes, the system is very flexible for data consumption and for the end user. If you want to incorporate risk measures into the ranking calculation, this is easy to do.
How does this work with SS&C Advent users that invest in private equities, hedge funds, and traditional securities for their clients? Does the product interface with SS&C Advent?
FundHub is centered on researching, generating, managing, and monitoring portfolios of funds. FundHub does support detailed performance tracking, NAV generation, trial balance support, and manages documents, investors, contacts, and other related information. As such, the platform currently supports fund investments, but there are plans to integrate additional investment types in the future.
I manage a fund with 50 Million AUM. Does it make sense to use FundHub at that level of AUM?
Yes, Fundhub is scalable for a business of any size – from a small to a large amount of users. FundHub makes the capital selection process more efficient and houses the investment process for managers to showcase to investors.
Can data results be exported out of the system via flatfile for analysis and integration?
Yes, the system has ability to export data in multiple formats. The system has the capability of sending direct feeds of data.
What output/reports, with what level of detail, is available on a per-investor level? (e.g., what is Susie Smith’s actual/estimated balance across all of her positions?)
The system can provide various levels of investor reporting including “per-investor.” This view details all of investors’ holdings giving them a clear view of their returns over any time period.
Is the app only for hedge funds or is it also for PE funds?
The application applies to both. The system can track subscriptions, redemptions, capital calls, and committed capital. Return Measures of PE firms (IRR) can also be tracked by the system and is being further developed however; the data is generally more difficult to source.
Can the liquidity terms and monthly performance in the system be tracked at the investment share class level?
Yes, the “funds” in the portal represents a potential investment down to the share class level, not simply at the highest (fund) level.