FUND MANAGERS: Looking for an ESMA 34-39-882 compliant liquidity reporting solution?
Despite optimism from the UK Government that Coronavirus and its variants have now reached their peak, the rest of Europe do not share the same buoyancy, with record cases across Germany, France and Denmark, the World Health Organisation have issued a warning to world leaders that Coronavirus pandemic “is nowhere near over”.
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An interactive online platform that manages and monitors portfolio risk for a variety of UCITS/AIF fund structures and investment strategies.
Arkus provides asset managers with flexible and independent risk management solutions as a Professional of the Financial Sector (PFS) supervised by the Commission de surveillance du Secteur Financier (CSSF) in Luxembourg.
Founded in London as independent Risk Monitoring Limited by Yves de Naurois and Peter Jeffreys. IRML started it activities in London as a provider of risk services with a focus on the funds’s industry. Central to the value proposition was the identification of risks inherent to the investment. Strategies and policies of investment funds. This activity led IRML to deal with compliance and governance issues working in cooperation with various service providers in the field of compliance, governance, and funds management companies through white labelling agreements.
Risk Management, Investment Compliance
Governance Services,
The average score of survey correspondents in 2019 who are satisfied with Arkus' services.
Regulated by the Commision de Surveillance du Secteur Financier (CSSF) since 2008.
ESMA 10-788-Standards.
Created in 2003 by experienced Asset Management experts.
English, Dutch, French, German, Italian, Spanish, Romanian, Serbian, Luxembourgish.
COMPETITIVE ADVANTAGE.
Through our risk reporting services we enable you to monitor the compliance of your portfolios with the regulatory requirements across various European jurisdictions; and/or adherence to a user defined risk profile. By using our services, clients can dedicate in-house investment risk resources to value-added functions, whilst being fully compliant. Our flexible and independent proprietary risk management system, RiskRadar™, enables us to interface with any fund administrator, receive data in any format, customise reporting to your specific needs and provide online access.
HOW WE ADD VALUE?
Founded in London as independent Risk Monitoring Limited by Yves de Naurois and Peter Jeffreys. IRML started it activities in London as a provider of risk services with a focus on the funds’s industry.
IRML opened a representative office in Luxembourg to ensure the support of its existing customers and to expand its business.
In November 2007 IRML created Mercuria Independent Risk Solutions (MIRS) In Luxembourg in partnership with Mercuria services a domiciliation and Management Company owned by some of the Arendt and Medernach partners (AM).
The company adopted the name Arkus to reflect its evolution and the enlargement of its services offering now based on four pillars: Risk Management, Governance, Compliance and Substance.
The company officially changes its name to Arkus Financial Services to reflect its new identity and officialise IRML’s expansion of its service offering to provide governance, substance, and compliance services in addition to risk monitoring and reporting services.
Arkus and BeeAM (French Consulting company dedicated to assist Asset Management Professionals) launched a French joint venture named Rsquare in April 2018, a cutting edge solution enabling the management and analysis of risk. Combining the expertise of Arkus and BEEAM, Rsquare is an outsourced risk management solution encompassing reporting and support, and that helps to comply with regulatory requirements.
Arkus announced the opening of its new London office on the 16th April 2018, located in the heart of the City of London and just five minutes’ walk from Bank Station. The drive behind the move is to reinforce our brand’s presence within the UK fund industry and to enable Arkus to be closer to existing clients in order to meet their needs and demands from a prime location.
Arkus Financial Services S.A., Luxembourg (Arkus) were pleased to announce that the Swiss Profidata Group (Profidata) entered into an agreement with independent Risk Monitoring Ltd, the London parent company of Arkus, to become the majority shareholder.
We are very flexible in terms of data format and have been managing data coming from most of the major Administrators. Most important is the stability of the file format as we code a customised data management process for each data-feed.
Costs will depend on scope. It will depend on the portfolio composition, complexity of assets and number of funds. Besides the annual reporting charges, there is also a one-off fee for the data management costs.
These will be integrated very fast. As we are focusing on these services these will have a high priority as they are of utmost importance to all our clients. The key to timely release is the capacity to follow regulatory changes through active participation in various associative consulting working groups and in regular exchange with our clients to ensure the system is always up to date with respect to regulatory changes.
We typically perform most of the tasks within the implementation project. Usually the steps comprise:
1. Analysis of client requirements
2. Analysis of source data and creation of Data Management Process
3. Set up of portfolios and related guidelines in the system and loading of first data
4. First set of test reports and discussion with client
5. Final adjustments and ongoing establishment of dataflow
6. Going Live
At Arkus, we can support a full range of portfolio assets classes, from simple bonds and shares to complex structured financial securities. A list of the instruments covered is available on demand.
Methodology and approach:
All plain vanilla assets are priced using standard pricing functions.
Arkus develops custom pricing functions for exotic assets (path dependent structures, certificates). Furthermore, look through on swaps on managed indices is possible.
Instruments that are not covered are proxied on a best-fit basis.
Yes, based on the actual positions in the portfolios using a statistical factor model.
Asset liquidity is assessed through a scoring approach using multiple criteria (e.g. position size, traded volume, rating, maturity, stale prices etc.). The overall score per asset is aggregated and translated into liquidity buckets. The report details the individual score for each asset and each factor that is used to assess liquidity. Our system also allows the risk manager to override a liquidity score based on asset specific information. This process is followed through an audit trail.
Our system fully supports the input and modification of investment restrictions monitoring at both legal and prospectus levels. Customised guidelines can also be created (e.g. client defined ESG lists)
Managing Director
Andrea Brevi
andrea.brevi@arkus-fs.com
+352 621 533 687
General Enquiry
info@arkus-fs.com
T : + 352 42 26 11 111
F : + 352 42 26 399
5 Rue Gabriel Lippmann
L-5365 Munsbach
Luxembourg
150 Minories
City Of London
London
EC3N 1LS
Ferry House
48-53 Mount Street
Lower Dublin 2
Ireland
7 Rue Roy
75 008
Paris
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