Ryedale knows indexing. We can consume indices and custom-indices from virtually any source, including all the major index providers. We store and present the data consistently regardless of origin, and completely eliminate the burden of cleansing data from your front-office staff. The techniques for replicating index performance are supported beautifully in the Ryedale Platform. Comparable features are missing in every other portfolio management system we know.

• Monitor funds against their benchmarks easily.
• Produce risk-balanced trades that ensure your funds track tightly whilst being light on T-cost.
• Manage index reviews clearly and with confidence.
• Deal with ‘substitute’ names, e.g. ADRs used instead of index constituents.
• Project cash and equitize with futures.
• Engineered to today’s software standards.
• Cloud-hosted.

Despite Asset Allocation being the most important determinant of overall portfolio performance, many top-down and multi-asset investment portfolios are managed on the most rudimentary systems. Ryedale’s asset allocation system provides a robust, high-quality, and institutionally-trusted solution for managing portfolios against policy weights. Our asset allocation software is used extensively at CalPERS where well over $15 billion of public pension assets rely on it for the following functions:

• Maintaining policy weights.
• Calculating actual weights from holdings and order data.
• Monitoring that funds adhere to policy within set tolerances.
• Maintaining a comprehensive book of record for unit holdings in internal and external funds.
• Serving as a book of record (IBOR) for tracking unit orders through approval, placement and execution.
• Automated electronic communication of orders to investment managers.
• Reconciliation of cash and positions with independently calculated IBOR data.

The rise of ETFs is relentless, but managing ETF portfolios entails extra business processes beyond those required for running a daily-opening index fund. Our ETF module allows you to:

• Create daily PCF baskets incorporating lookahead changes and customize if required.
• Manage multiple Authorized Participants, their create/redeem preferences, and their orders for various PCF baskets.
• Burst unit create/redeems from multiple APs.
• Manage the tax impact of portfolio rebalancing by incorporating book costs and gain-loss data.

Ryedale’s Transitions Management module provides functions to assist in the large-scale restructuring of portfolios. Working alongside the asset allocation and portfolio management modules, this module organizes the buys and sells across multiple accounts, eliminating the ‘cross’, transferring securities at the custodian, and managing the completion of the residual trade on the open market. It includes:

• List Manager: a function for maintaining the lists of positions required in the initial portfolio by new accounts.
• Matching: calculates the ‘cross’ between delivery lists and requirement lists.
• Transfers: manages custodian communications concerning inter-account transfers of securities and value.
• Trade Orders: manages market trading of the residual, with reporting concerning completion and trading cost.

The Order Management module provides functions for storing, reviewing, and sending trade order instructions onto various trading venues. The FIX protocol is built-in, and we’ve verified our connections with Instinet and Bloomberg EMSX. We support several other bespoke order interfaces and are continuously adding new ones. Functions include:

• Setup Execution Venue: keep all the configuration of execution venues in one place.
• Place Orders to Execution Venue: supports FIX protocol and various customized file-transfer protocols.
• Record Execution details: order executions are recorded and allocated to the funds in a way that maintains a complete trading book-of-record, a key driver of our IBOR.

The Hedging and Synthetics module extends portfolio management and asset allocation capabilities to funds that use futures and currency forwards. Clients use these functions to achieve synthetic exposures, either for hedging purposes, mandate completion, or for taking outright risk. Functions include:

• Futures and Currency Forwards: full support for these security types.
• Expiry Manager: monitor which exposures are nearing expiry and generate orders that sell out of a held position and buy into a longer-dated position.
• Cash Equitization: hedge income accruals to the benchmark of an index fund using equity futures.