A modular platform

The Definio Reply™ platform modules are able to fully respond to the analysis and monitoring needs of financial assets. The customer has the ability to optimise and customise the product according to their own needs and requirements. The Definio Reply™ suite has been designed to address the needs of: Financial Databases (legacy and multi-provider), Portfolio Analysis, Risk Management, Reporting and Control and Engines.

The platform is composed by 5 modules:

1. Definio Master Data

This module extends the capabilities of the Definio Reply™ database, in order to manage the updating and monitoring of the database using an automated and centralised approach. The module also facilitates the management of custom indexes, proxies and rate structures. Definio Master Data provides access to leading financial information providers, managing the normalisation and control of every individual ticker. Data from internal company sources and Definio can become contributors to the Definio Master Data. Thanks to this approach, the database becomes the corporate hub of certified financial data. The solution also takes advantage of connectors to major financial open data providers, from central banks to Yahoo and Google.

2. Portfolio Analysis

Daily portfolio analysis

Definio Reply™ is able to calculate and contextualise the value and composition of portfolios, financial tools, indices and benchmarks, analysing the absolute or relative performance. The completeness of the information maintained facilitates the use of advanced analysis models.Definio Reply™ provides many methods for the management and analysis of portfolio data, including the analysis of individual portfolios and their aggregations (client assets, management lines, banking institution totals, etc.), as well as the definition and analysis of model portfolios, strategies and simulated portfolios.

The Performance Management module calculates risk adjusted performance indicators at the portfolio level (single, aggregate, model and simulated) using a Money Weighted and Time Weighted approach. The same analysis tools and metrics available on the portfolio are also present at the benchmark level and in the analysis of the active performance. The analysis can be grouped into three main areas:

• Absolute performance indicators for portfolios and benchmarks (Total Return, Volatility, Sharp Ratio, etc.)
• Relative performance indicators; portfolio and benchmark comparison, asset class and peer class comparison (Excess Return, Tracking Error, Information Ratio, etc.)
• Contribution to performance, identifying the clusters that create or destroy value both at the portfolio, as well as the benchmark level.

3. Definio Risk Management

Definio Reply™ provides a complete solution that covers both ex-ante and ex-post risk analysis for financial investments. With Definio Reply™ clients can:

• monitor each portfolio constantly over time, through the periodic calculation of risk indicators;
• monitor portfolio aggregates, simulated portfolios and model portfolios;
• analyse the absolute risk of the individual portfolio and that of an index, a competing product or a reference rate;
• measure the risk contribution of each individual instrument as regards the total portfolio or its sub-portfolio;
• evaluate the impact of asset allocation variations (what-ifs);
• carry out Stress Testing and Back Testing activities.evaluate the impact of asset allocation variations (what-ifs);

4. Reporting and Control

Reporting

A reporting solution integrated within the Definio Reply™ platform facilitates the creation and distribution of multi-format reports. Definio Reply™ provides the user with a set of reports able to cover all possible areas of analysis related to a portfolio, the client who owns it and the securities it comprises.

Working in a simple and intuitive environment, the user can create new reports and analysis spreadsheets. Through a scheduling tool, it is possible to configure the automatic generation of a subset of defined reports. The open architecture of the database facilitates an easy integration with enterprise reporting systems.

Control

Constant monitoring of the conformity of investments against mandated legislation and restrictions.

• Definition of limits on any dimension, measure or attribute found in the Definio database
• attribution of rules and limits at any level/node of the hierarchy of portfolios
• attribution of multiple rules and limits
• Definition of tolerance thresholds for deviations from reference parameters
• Control over a single measure or a set of measures (for example, control over all the durations that make up the portfolio)
• Identification of deviating portfolios or portfolios at risk of deviation (tracking, alerting and specific reporting)
• Tracking of thresholds and limits at the portfolio level and the line level
• Periodic Monitoring of portfolios with automatic receipt of reports and alarms

5. Engines

The engines available as part of the Definio Reply™ platform can also be made available outside the platform. Thanks to this approach, they add value to the data entered in the system in which they operate (data enrichment). It is therefore possible to use only the platform engines component, integrating them into proprietary systems and processes, using a white label platform to extend the analysis capabilities of the particular systems.

Examples of the use of individual modules and engines:

• Data centralisation and distribution
  • Access API
  • Certification
  • Savings as regards info providers
• Model portfolios
• Market analysis
• Database indexes, exchange rates, interest rates
• Simulations
• Reporting
• Rischio and performance engines
• Master Data multi-provider