Sabby Management Sticks With SS&C GlobeOp
About two years ago, Sabby Management found itself in a tight spot. The hedge fund had a month to find a fund administrator for two new funds, says Robert Grundstein, chief operating officer and general counsel for the firm. Sabby was launching two healthcare sector fund complexes for September and November 2011 that manage more than $200 million.While a legacy fund that has since been wound done was overseen by another fund administrator, Sabby, run by Hal Mintz who is based in Upper Saddle River, N.J., was looking for a new administrator for the two new fund complexes. The hedge fund was also in the market for web portal support, mobile apps and ways to streamline processes and automate “a lot of manual work,” Grundstein says. “We needed a firm to act quickly and get a fund complex set up and running in one month.”
Sabby turned to GlobeOp and after two weeks in September 2011 the vendor began administering the two funds via the GlobeOp facilities in Evansville, Indiana. Internally, Sabby has two primary users. By June 2012, however, SS&C Technologies acquired GlobeOp, which has yet to cause Sabby to move elsewhere, say Sabby officials.
“Sabby has full, read-only access to the SS&C GlobeOp web portal and mobility apps,” Grundstein says. “We can run reports directly from this portal, access fund performance information, investor information, and so on.” After 18 months, the firm’s most tangible result is “timely and accurate information to Sabby and also to the investors,” he says.
The Evansville center offers accounting services to hedge funds, fund of funds, managed accounts and private equity funds such as NAV preparation, cash and security reconciliations, and investor services.
Sabby Management is using SS&C GlobeOp services for:
- Investor relations—processing subscriptions, redemptions, and antimony laundering and know your customer (AML/KYC) checks;
- Setting up a fund bank account and providing treasury type services such as processing wires for fund expenses;
- Official books of records for its funds;
- For all trades and corporate actions, if applicable;
- Reconciliations of positions, market value and cash to the prime brokers, counterparties and fund manager;
- Book journal entries for any fund expense and other income;
- Allocations of income/loss to each investor;
- Book management and incentive compensation;
- Generate and distribute investor statements;
- And assistance with year-end audits
For the future, Sabby is likely to consider SS&C GlobeOp’s services for meeting new and upcoming regulations such as Form PF and FATCA compliance, Grundstein says.
The acquisition has made SS&C GlobeOp the fourth largest fund administrator in North America, says Kyle Fields, director of fund operations at SS&C. In fact, the vendor is helping SS&C legacy clients use GlobeOp’s GoRisk and other middle office solutions, Fields adds. Clients do not need special application integration services to use SS&C’s and GlobeOp’s offerings. “Our services are available via a single platform.”
ConvergEx Finalizes Sale of Eze Castle Software and RealTick
ConvergEx Holdings has completed its sale of Eze Castle Software and RealTick to an affiliate of TPG, officials say. ConvergEx will narrow its focus to the brokerage and trading-related services it offers to institutional investors and financial intermediaries.
Eze Castle Software and RealTick will operate under the name Eze Software Group, officials say. ConvergEx will have “a close relationship” with Eze Software Group via a cooperative marketing arrangement that will allow each vendor’s services to be offered on an integrated basis. TPG and ConvergEx will also cross-sell the other company’s services. Goldman, Sachs & Co., JPMorgan Securities and Citigroup acted as financial advisors to ConvergEx. Kirkland & Ellis served as legal counsel.
ConvergEx will not be changing its management structure as a result of the transaction. The vendor did not disclose the financial terms.
Mizuho Units Use Wolters Kluwer for Basel III Reporting
Wolters Kluwer Financial Services has landed its offerings at the Mizuho Corporate Bank Nederland NV (MCBN), a wholly owned Dutch subsidiary within the Mizuho Financial Group, and at a subsidiary of Mizuho International, officials say.
MCBN has licensed the Common Reporting, Financial Reporting and Liquidity Coverage Ratio modules of the Basel III solutions offered by Wolters Kluwer. MCBN will be able to calculate and submit the CoRep reports in compliance with the requirements outlined by the Basel Committee for Banking Supervision, officials say.
Mizuho International, the London based securities and investment banking arm of the Mizuho Financial Group, Inc., has also licensed these modules in order to automate Basel III regulatory reports, outlined in May 2011 by the European Banking Authority and the Financial Services Authority. (Mizuho International is also a wholly owned subsidiary of Mizuho Securities UK Holdings Ltd.)
Bank Leumi Deploys Calypso Platform
Israeli banking corporation Bank Leumi is using a trading support platform from Calypso Technology that includes coverage for interest rate derivatives via functions stretching from front office trading to final delivery and settlement, say Calypso officials.
The Bank Leumi platform will monitor global exposure via views into trading, pricing, risk monitoring, trade processing, settlement, delivery and position-keeping. The platform will also allow the bank to develop new products and instruments to market, officials say.
Bank Leumi signed on with Calypso Technology in December 2012 and implementation began early in January 2013, officials say. This is the first time Calypso has worked with an Israeli financial institution.
Oddo Services to Use SmartStream Wares
Oddo Services Switzerland, a business process outsourcing (BPO) provider owned by the French bank Oddo & Cie, has selected SmartStream Technologies’ TLM Corona product for its BPO offerings in Switzerland. The arrangement will let Oddo Services Switzerland’s clients perform their reconciliations on a single platform—SmartStream’s TLM Corona—in an auditable environment, officials say. The TLM Corona modules offer intra-day reconciliation of cash transactions, securities messages and confirmations.
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