Investment Administration and Pricing Services | Sanlam
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Investment Administration and Pricing Services

Investment Administration acts as the link between the fund’s administrator and asset managers, monitoring and managing cash flows between the service providers.

This function forms part of our basic administration model, but it can also be provided as a stand-alone service to a retirement fund that requires a unitised and daily or monthly priced administration environment.

  • Cash flow between a fund and the relevant investment managers are closely monitored
  • Unit prices are calculated daily
  • Investment administration reporting is produced
  • SA Reserve Bank reporting is generated
  • Market value adjustments are done daily between investment administration and fund accounting via general ledger postings
  • Maintains excellent fund governance
  • Ensures that fund assets are correctly reported
  • Cash flow between a fund and the relevant

Options

  • Providing monthly unitisation (if daily unitisation is not suitable)
  • Managing Regulation 28 monitoring and reporting processes
  • Rebalancing underlying assets of a fund for scheme-level products
  • Rebalancing of underlying investment portfolios

Pricing

The pricing team ensures that portfolios are priced accurately on a daily basis. The team prices over 2 500 portfolios across the globe - covering all asset classes – and does extensive reasonability testing on received market values and calculated prices.

The pricing function includes:

  • Updating market values of funds and matching cash flows with asset managers daily
  • Reconciliation with member administration
  • Rebalancing instructions of multi-managers and/or consultants
  • Processing member administration instructions and non-member related transactions

Technical Support

The technical support team checks to ensure that prices are correct. For added security there is segregation of duties between this team and the pricing team. Part of the team’s daily responsibilities is to do reasonability testing of market values and prices against benchmarks, as well as comparing test results to other funds with similar asset allocations. This is done both on a daily and monthly basis.

Implementation

The implementation team is responsible for setting up client investment structures and changes to these structures according to a client’s investment mandate.

This includes:

  • Creating fixed cash flow templates for investments and disinvestments
  • Setting up strategic asset allocation
  • Arranging for market value data from asset managers
  • Building product benchmark data for the particular investment structure

Treasury

The treasury team is responsible for the investment, disinvestment and switch instructions to the asset managers as well as the payment instructions regarding investments. They also reconcile portfolios on a weekly basis to ensure that instructions are processed and confirmed by the asset managers. The treasury team allows for a turn-around time of less than three days to follow-up on long outstanding trades.

Investment Accounting

The investment accounting team reconciles investment manager monthly reports to values carried on the IPA’s unitisation and pricing system, called Interlink. This is done on a per-portfolio basis.

This team is also responsible for preparing and submitting quarterly asset allocation reports (These are called D427 reports) and any surveys to the South African Reserve Bank (SARS). In this regard the investment accounting team will also compile and submit Regulation 28 reports to the Financial Services Board (FSB).

Reporting

IPA can provide a number of reports (for a specified period) on a monthly basis, such as:

  • Detailed client holdings report – providing client holdings by product
  • Period portfolio performance report –displaying the period performance values for the selected portfolios
  • Portfolio attribution analysis report – displaying the attribution analysis for the selected portfolios
  • Client activity report – providing client details, including movement and balances per product
  • Unit pricing tracking report – showing the selected portfolio prices, per selected monthly price
  • Day-end values summary report – showing the day-end values for the selected portfolios

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