The Heart of Wealth Management

The OMS is the heart of Apollo

Apollo Asset Management, proposes complete and integrated solutions for order support. With its OMS (Order Management System), the solution has become a necessity for asset management companies.

On the one hand, the managers can take positions on portfolios on passing simple orders. On a set of portfolios, the decision on a security gives rise to block orders to minimize costs.

On the other hand, Apollo Asset Management software offers calculations of target amounts based on your organization goals. These may, for example, be calculations on the amount of net assets or on available liquidity. Thus, a large range of algorithms are available to help managers rework on their list of portfolios.

In addition, Apollo Asset Management software also generates a set of orders based on an amount to invest or disinvest. This is done through the program trading function (basket orders). The basket benchmark can either be an index, a portfolio or a model portfolio. It can also be the entire portfolio or just a pocket.

Instrumental Perimeter

Hedging: Apollo Asset Management supports orders on major asset classes; thus, making it possible to place orders on shares, UCITS, bonds, options, futures, negotiable securities, deposits or on foreign exchange contracts with ease.

VERIFICATION OF CONSTRAINTS

One of Apollo Asset Management Solution’s specialty is the control of pre-trade constraints during order creation. Detailed reports notify the manager on the assessment of constraints. In addition, the solution traces all assessments to ensure a complete audit trail.

SPECIFICITY OF ADVISORY MANDATES

With respect to the MIFID regulations for private wealth management, a complete solution ensures the good traceability of the relationship between the manager and his client. Arbitration decisions give rise to order placement. They are generally followed by the generation of summary reports for clients such as statements of adequacy.

THE PRECISION OF ARBITRATION MANDATES

The management of life insurance accounts is also a strength of Apollo which has made it a benchmark in the field. After the proposal for disinvestments & reinvestments, real-time communication can be established with the insurer to validate proposals.

APOLLO, A KEY SOLUTION FOR INDUSTRIAL MANAGEMENT

With flawless robustness, Apollo Asset Management guarantees volume management based on its modern technical architecture. Admin screens are used to define realignment campaigns.The rest is provided by automatons. Every day, our solutions are proven to meet several millions of orders on customer requirements.

On the same note, security allocation operations on large volumes is also a proven reality to which Apollo asset management solutions respond with a perfect reliability.

Apollo’s OMS is a control tool for your operational risk

In a context of increased control of the operational risks as addressed in the Basel agreements, the formalization of the management of orders placed becomes essential. Entering orders into a computer system, which traces the life of the order, is in fact crucial at this point.

Apollo Asset Management OMS offers a series of functions and a workflow easily adaptable between different users of order books.

A complete STP, from decision making to transaction accounting, is available through the product communication API. This makes it possible to adapt to standard market protocols or to the proprietary formats of various players.

• Not only do we fully support the FIX protocol. We also guarantee transmissions to the main implementation platforms (eg: AMUNDI, TradeWeb, etc.).
• On the other hand Apollo Asset Management connects to the main UCITS order centralizers in the market, through swift messages.
• Finally, we provide settlement & matching functions through swift messages.

Apollo establishes a full audit trail through event reporting for every action on an order. This allows full traceability and meets the securities expected by the control structures.

RCCI dashboards for private wealth management

In private wealth management services it is very important to provide those responsible for compliance and internal control (RCCI) with summary dashboards. These feedbacks are also adressed to top managers.
This database allows the supervision of activities with a management point of view of an asset management company.
Apollo PWM Apollo PWM can provide many such reports. The usually desired format of our clients is often Excel in order to allow the teams of Compliance and Internal Control to rework on their existing data. However, Apollo Asset Management can also produce final reports in a PDF format.
Apollo PWMuses its flexible architecture to produce reports tailored to each client’s needs.

RETENTION OF Compliance and Internal Control DATA

The conservation periods of compliance and internal control dashboards is generally twelve months for a monthly analysis perimeter. This could also go beyond two years for an annual analysis.

SYNTHETIC RESTITUTION

Dashboards are available to compliance and internal control managers from your Apollo, a dedicated portal. Given the sensitive nature of this data, the security is unbreakable for intruders; strict security and access systems are installed. The list of incoming reports is calculated daily which makes users always ready for usage in the Apollo Asset Management database.

Here are SOME examples OF our REPORTS

The segmentations are multiple, and Apollo PWM produces dashboards adapted to different consumer needs. We illustrateApollo Asset Management 's rich coverage through a few examples.

Apollo, a central tool for asset allocation in an STP framework

MANAGEMENT OF THE ASSET ALLOCATION

Apollo Asset Management asset pockets structures through a hierarchical view structured around the instrumental characteristics. These hierarchies are at the heart of the system and drive the views of positions.

STRATEGIC ALLOCATION

The first step is to define a long-term allocation; (ie.) strategic allocation. At this point, weights are defined for each pocket. We also define minimum and maximum limits to frame the allocation. These possibilities give rise to allocation grids for productive, coherent and integrated management of asset allocation.

CONSTRAINTS AT THE HEART OF THE ALLOCATION PROCESS

Apollo also allows for constraints on asset allocation. The manager can then check the compliance of his allocation. The respect of the limits within the pockets is always checked during the management process. The system also considers market movements that amplify or reduce the size of the pockets. In terms of constraints, Apollo responds with verification in pre-trade mode but also in post-trade constraints.

Thus, the manager can check the compliance of his portfolios from his workstation. Apollo assists him in making the necessary corrections.

BASKET ORDERS AND STOCK PICKING

The system also offers basket orders to invest or withdraw an amount from a pocket. Apollo offers solutions to the manager to help correct asset allocation discrepancies. In addition, the stock picking possibilities are easy to use.

The Apollo solution of course makes it possible to intervene only on an asset in direct allocation, for example to adjust the pocket to which the asset belongs. On a set of portfolios, Apollo will offer block orders; as considering volume is essential, the system can process a very large number of portfolios. The assisted management module responds perfectly to these issues.

TACTICAL ALLOCATION AND considering "MARKET DRIFT"

Apollo also helps tactical allocation , particularly around "market drift".

The purpose of this asset allocation process is the constitution of model portfolios. These are used in the construction of the final portfolios. The model portfolios are, in a way, the “optimal” portfolios. The weights consider strategic and tactical allocation.

They define for each asset pocket, the investment universe. For the modeling of these pockets, we can for example use composite indices or asset lists.

Adapted screens facilitate the constitution of these model portfolios. At all times, the link with the target portfolios is visible in the application.

OTHER ORDER GENERATION SUPPORT

COMMITMENT TO TAKING INTO ACCOUNT DERIVATIVES

The Apollo app provides an allocation view tailored to the use of derivatives. This is because the calculated weights can be either weights relative to net assets or weights relative to commitment. In the latter case, derivatives and funds are broken down into their underlying. This decomposition then provides a precise view of the actual exposure.

THE PROPOSAL OF ORDERS IN RELATION TO THE DIFFERENCES FROM THE MODELS

The manager can follow the evolution of all his portfolios by simply visualizing the differences between the portfolios and their models. Apollo generates orders on its portfolios in a single pass to put them back online with their models.

The solution also makes it possible to treat only one bag to reach a target weight.

MANAGEMENT OF BOND POCKETS

The construction of bond portfolios differs from equity portfolios. For this type of management, Apollo offers suitable solutions. Thus, bond managers will tend to increase or decrease the relative duration of a pocket compared to a benchmark. This possibility avoids managers having to adjust weights, as is the case for stocks.

Apollo thus makes it possible to visualize the contribution of each maturity range to the duration of the portfolio compared to the benchmark. This solution made Apollo a benchmark in the field. It facilitates the work of managers and offers them the opportunity to set up bond orders from contributions relating to maturity ranges.

Note that this work can also be carried out using other interest rate risk indicators such as sensitivity.

REALIGNMENT OF PORTFOLIOS

The realignment of portfolios according to the models takes place through a very flexible process. Indeed, this can be done in relation to weights expressed in terms of net assets or commitment. The latter approach makes it possible to account for positions in derivatives. It is also possible to specify a minimum order size.

In order to meet all requests, the process may be limited to the exclusive generation of buy or sell orders.

INDUSTRIAL MANAGEMENT: APOLLO, A REFERENCE IN THE MATTER

Realignment can be carried out in mass on a large set of portfolios from an industrial perspective. Apollo then offers buy and sell orders to bring the portfolios back in line with their models. The proposed orders are modifiable. The impact of the change on the portfolio allocation is immediately available.

In institutional management, this process is carried out more finely, pocket by pocket. Thus, for a diversified fund, the tool makes it possible, for example, to first model the equity pocket and secondly the bond pocket. Apollo enables tactical allocation decisions to be implemented by adjusting the weight of a pocket. Note that the product also offers liquidity optimization solutions with powerful algorithms based on suitable instruments. For example, it is possible to invest in money market funds, pensions or deposits.

PASSING OF ORDERS AT THE HEART OF AN STP PROCESS

In addition, the realignment process follows a front-office STP process. Indeed, the constraints are evaluated in pre-trade and the proposed orders are sent directly to the order book.

TO CONCLUDE, A COMPLETE AUDIT TRACK

Finally, the process of realigning portfolios against their models is a completely secure process offering a full audit trail on order generation and compliance.

A Perfect Fit for All Regulatory Compliances - Apollo Asset Management

Integration into compliance: The management of constraints is at the heart of Asset Management business. Companies are usually very demanding on this issue because it is a main priority to the management.

DIFFERENT CLASSIFICATIONS OF CONSTRAINTS

There are multiple types of constraints. We list out some classifications of constraints below:

• The legal constraints to which the funds are submitted for the financial market authorities. We find this in the hub of the control ratios or the constraints of exposure to issuers such as the 5-10-40% rule.
• Statutory constraints involve the legal nature of portfolios, such as the restriction on ‘share saving plan’ type of portfolios or geopolitical embargoes. We can also integrate type FACTA / IRS controls, section 871M or the issue of customer data protection (GDPR).
• Contractual constraints which relates to the restrictions imposed by the manager or the type of fund. Within this perimeter, we find constraints relating to asset allocation, management themes, and areas of activity to be allowed or prohibited.
• Institutional constraints which are often imposed by Asset management companies to secure funds. Among these types of constraints, we could, for example, define rules prohibiting certain issuers regarding ratings or certain assets that the investment company does not wish to position.

BEYOND THESE, THE CONSTRAINTS CAN BE POSITIONED AT DIFFERENT LEVELS. THEREFORE, DIFFERENT TYPES OF CONSTRAINTS ARE DISTINGUISHED BELOW.

• The constraints on assets which are meant to prohibit a set of securities either by ISIN codes or by issuer or more generally in relation to a breakdown on an allocation structure. For example, this makes it possible, to prohibit constraints in relation to geographical areas or to asset classes.
• The constraints on transactions which lets you check conditions to activate the rules at the time of the pre-trade. For example, if a constraint is defined at the level of an issuer, only the issuer of the traded asset will be processed.
• Transverse constraints makes it possible to verify the rules on all positions in the portfolio. For example, a counterparty risk exposure rule will be treated by scanning all the counterparties with which the portfolio is checked in its open positions on over-the-counter contracts.
• Allocation constraints that are used when a model portfolio management mode is considered. In this context, the minimum and maximum thresholds per pocket are evaluated in order to ensure that the investment limits are respected.

Settings

Apollo Asset Management covers the broad spectrum of constraints by offering an architecture paramétrage configurated with qualitative levels of severity; because banks must be able to constantly adapt. Apollo Asset Management solution is scalable, it helps the manager to quickly go through his own management constraints, it assists the Middle Office to maintain customer constraints and it lets asset management companies to define specific constraints for their establishments.

In addition, our solutions are equipped with a complete audit trail granting the status of the present rules in force on current portfolios or at a retroactive date to be monitored at any time. They provide detailed monitoring of arbitration decisions made by advisers and decisions made by clients.

Des Constraints libraries can thus be implemented and deployed on managed portfolios and funds. About regulatory constraints, we provide standard kits for compliance with international requirements. In this context, UCITS constraint kits for each country are available and applicable for all funds with standardized settings and in accordance with the regulations in force. MODE D’ÉVALUATION DES CONTRAINTES

CONSTRAINTS EVALUATION MODE

Apart the configuration, which is predominant in the pre-tradecompliance and management. Apollo Asset Management Software provides verification and traceability of all constraints for audit and control purposes. The placing of orders may be blocked or subject to approval in the event of non-compliance with the rules. Thus, respect for compliance is always at the center of the portfolio management system. Rules that pass during the day may a few days later no longer be respected, for example due to price variations amplifying or reducing exposure. This is where post-trade takes center stage.

In addition, post-trade constraints are checked every evening by batch, and monitoring reports are sent to the units in charge of compliance management and risk control. In the event of a violation of post-trade constraints, workflow mechanisms are activated between internal control and management in order to trace and resolve rule violations.

Conclusion

For all these challenges, Apollo Asset management Solutions responds with an exceptional level of requirements and excellent response times thanks to its technical architecture on calculation servers adapted to these issues.

7 Ways to Improve your Asset Management Game

1- Track funds that enter and leave portfolios

2- Monitor purchases and sales of assets

3- Supervise the monitoring and analysis of the content of portfolios

4- Meet your regulatory obligations

5- Control operational risks by automating and tracking the investment processes

6- Support different workflows

7-Reduce operational costs by industrializing processes