Group Co.
TORA Announces New Rebalancing Service
Traders Magazine Online News, October 26, 2018
TORA, provider of advanced cloud-based order and execution management system (OEMS), recently announced the launch of TORA Rebalancing. This new solution is natively integrated within the TORA platform and helps asset managers reduce risk and improve workflow efficiencies around the portfolio rebalance process.
TORA Rebalancing helps portfolio managers rebalance the allocation/weightings of a portfolio’s assets in order to maintain its risk-return characteristics, which can get out of alignment over time as the value of various assets change. In addition to facilitating rebalances, the solution also helps firms manage subscriptions and redemptions, construct portfolios, synchronize separately managed account (SMA) and primary fund portfolios, and share and repurpose portfolio models.
Independent of the frequency that rebalancing needs to be performed, the process should be as efficient as possible and factor in various compliance, risk and allocation guidelines. As part of the TORA platform, TORA Rebalancing is integrated with the platform’s compliance, risk and trading capabilities to further reduce risk and streamline the rebalancing process.
The product has recently been added by Jin Investment Management, a Singapore-based hedge fund that has used TORA’s OEMS for several years, to help the firm reduce risk and improve their portfolio rebalance workflow.
“Up until now, rebalancing our portfolios was a manually intensive and tedious process that distracted our PMs and traders,” said Jin COO Chris Blight. “We are now able to trust the TORA platform to do the all calculations and compliance checking automatically, saving us time and providing peace of mind that nothing is being missed.”
Robert Dykes, TORA CEO, commented: “Chris and Jin Investment Management have been clients of ours for several years and it was great to collaborate with them on developing our new rebalancing capabilities. We are thrilled when we can partner with our clients to develop solutions that can help them reduce their operating costs and focus their time on making better investment and trading decisions.”
Key features in TORA Rebalancing include:
Portfolio modeling
- Portfolio managers can model asset distribution using either target exposure percentage or exposure change in terms of notional or quantity at any breakdown level including: individual asset, asset type, strategy, custodian, sector or country.
- The models can be easily saved, shared and re-used across multiple rebalancing sessions
Rebalancing sessions sharing
- Rebalancing sessions can be shared in real-time across multiple portfolio managers.
- Exposure changes made by any portfolio manager are reflected in real time to all other users.
Real-time order generation
- Exposure targets generate candidate orders in real time.
- Order candidates can be reviewed/approved before routing them to the TORA OMS module.
- Exposure deviations caused by price movements are immediately corrected and new orders are generated.
Robust compliance integration
- Candidate orders are checked against the compliance thresholds for the fund.
- Candidate orders that cause compliance violations can be quickly brought back in-line with a single click.
- Exposure residuals generated by candidate order corrections can be redistributed across the remainder of the candidate orders to keep the overall exposure constant.
Single view for managing and rebalancing multiple portfolios
- Model and maintain multiple portfolios in one view using partitioning at fund, strategy or custodian level.
- Realign exposures and models across multiple portfolios with a single click.
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