Our client was using a prototype cash-flow management tool developed on Excel. While this automated some of the manual work the tool had become increasingly difficult to extend for additional forecasts and functionality.
With a dynamic team, and essential input from the client, VerifAction developed a robust and flexible system allowing full cash-flow management for all funds. This new system:
- Imports daily forecasts,
- Monitors for new funds,
- Handles exceptions according to rule-sets and
- Swiftly generates an optimal cash flow strategy for each day.
Daily files are automatically imported for:
- Account balances
- Fund forecasts
- Manual adjustments
- Market values for calculating issuer exposure
- Maturity reports
The forecasts are displayed on a dashboard which highlights any major issues (such as short funds or fund changes) and shows the user a concise view of the day’s transactions.
Optimal cash flow is calculated based on:
- Fund group limits and balances
- Issuer exposure
- Call account rates
- Overall bank limits
- Fund minimum and maximum limits
- Special rules for funds
When available funds, including those in call accounts, are insufficient the system informs portfolio managers suggesting quantities for selling.
The optimal strategy is presented for review before generating transactions to call or place funds. Consolidated and formalised email instructions are issued to the banks.
Transaction results are imported back into the system providing detail on possible compliance issues. These transaction can be cancelled or overridden.
All transactions and forecasts are stored in the database, logged against specific users for easy auditing
