GAMA Competitive Advantage
We’re often asked about the competitive advantages of the GAMA portfolio management solution. We also appreciate, that experts in Portfolio Management would like to understand how GAMA differs from other software systems for business investment available in the Russian market. Below you will find a quick overview, including key highlights and the main differentiators associated with GAMA.
When should you consider using a Portfolio Management Solution
If your company is faced with the task of automating the internal records, for the sole purpose of issuing regulations controlling the reporting and satisfying regulatory organisations, it is unlikely that implementing a GAMA portfolio management solution can be financially justified. For such requirements there are systems available in the market which can automate the back-office. They are relatively cheap and can — depending on the vendor — more or less cope with the task.
If the challenges you face have broader scope in terms of offering genuine support to your portfolio managers, working with non-residents, have to manage pool products and/or have a management holding company that controls the management of your assets, then we recommend that you consider investing in a GAMA portfolio management solution.
Competitive advantages of GAMA
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1. Portfolio Analysis
The Manager and back-office system receives information about each asset in the portfolio as well as the portfolio as a whole. This includes factors such as:
- Balance sheet and market value
- Various options for profit /loss (realised, un-realised, taken into account/excluded, exchange rate) In total you have more than 20 options to work with
- Debt
- Percentages (shares) in the market and book value of the portfolio
- Return (yield — weighted by time (TWR); yield — weighted by the money (MWR); yield to allocated funds)
- Duration, yield to maturity etc.
In total there are more than 200 indicators and, we would like to highlight that these indicators can be monitored not only in the context of portfolios, but also for the issuers and types of assets, asset classes, currencies, etc.
2. Multi-currency accounting
Often, a multi-currency account only means having a portfolio of cash accounts in different currencies. >In GAMA, you can assign each of these accounts with its own currency portfolio accounting!
An example:
You have signed a contract with the company controller, for which you need to keep balance, track the status of the portfolio and issue reports in – say — three currencies:
- U.S. dollars — the company’s management of the client
- Euro — the owners of the client company
- Roubles — control and regulatory authorities of the Russian Federation
- GAMA allows you to balance, portfolio account and reporting for any portfolio in multiple currencies.
3. Support for complex portfolio structures
Options for the structure of portfolios can be very different. It all depends on the specific problems faced by the management company. I.e. managing customer pool products, control over investments, etc.
GAMA facilitates a few important ‘details’ relating to complex portfolio structures, such as:
- each portfolio can have its own currency account!
- each portfolio can be different from other portfolios, the balance sheet calculation (i.e. a portfolio of LIFO, the remaining FIFO)!
- for each portfolio you will always see the current status (i.e, based on recent market prices and last entered/imported transactions in assets and dividends, coupons, redemptions)!
4. Portfolio Modeling (what if)
With the application portfolio «what if» the Portfolio Manager can simulate the state of the portfolio and its profitability, predict the financial result of the portfolio, identify a violation of the investment declaration, etc.
5. Planning the financial results for operations with assets
When administered in the portfolio accounting methods LIFO or FIFO, GAMA shows not covered layers and allows you to track the financial performance in case of sale of each layer. This allows you to plan the desired financial results for operations with the assets.
6. Stress-testing and analysis of bond portfolios
GAMA can automatically build static and dynamic yield curves for a given set of bonds. Use these curves to analyse the behavior of bond portfolios. This allows managers to form bond portfolios that are resistant to market fluctuations.
7. Specialised reporting tools and instruments
GAMA comes with an in-build specialised the reports generator (reports in Excel) and the documents generator (documents in Word). The generators were originally created for a particular application — management of assets — and therefore provides powerful and flexible functionality which would be unattainable using standard tools. Using the report generator the user can — without any special programming knowledge — create their own /necessary reports on a professional level. GAMA also comes with a report library, including the most complex reports required for submission to regulatory and supervisory bodies. Press a button, and they’re ready to ship.
8. Consulting
Very often specialists in companies operating in the stock market get irritated by the fact that some software developers do not know the subject matter in-depth and hence they have to spend a considerable amount of time trying to explain what is obvious to a skilled back-office manager.
When your company invests in GAMA, you work with experts who have been focused creating systems to manage portfolios for over 20 years! And this experience is not limited to working with the Russian market. The technologies that we use and develop, have worked successfully in the stock markets in Europe for over 25 years. Take advantage of our experience! We’re confident that we can help you not only to understand the operation and efficient use of GAMA, but also provide useful advice and insight on many of the practical issues that arise when you need a solution to problems encountered when dealing with account transactions in assets and management of securities portfolios!
