Financial operations specialist SEI has developed an automated solution to a range of functions associated with the management of side pockets, which until now have been generally managed manually.
The aim is to provide managers with greater processing control, efficiency and risk-reduction capabilities when managing pools of illiquid assets. Capabilities that have been automated include performance fee calculations, capital transfer activity, and income and expense allocation methodologies, as well as an expanded cost basis release methodology on redemptions.
Side-pocket investment processing is typically performed manually because each manager has its own complex methodologies. SEI – which uses SunGard’s