Reliability and continuity of services

A range of activities that directly support operational processes usually managed by the Customer.

Business Services

The range of BS services includes a series of activities that directly support operational processes usually managed by the Customer: updating of the securities database and the SimCorp Sofia holdings environment, NAV calculation, Risk Management Reporting and user profiles managing.

The BS services are highly flexible, configured according to the Customer’s needs, supporting all the activities carried out using SimCorp Sofia, from financial investments - database administrative management to more specialized activities.

SimCorp Sofia Decision Support System

The service makes available to stakeholders - Front Office, Risk, CFO - analysis of the securities portfolio according to exposures, risk measures, simulations and economic and financial forecasts, valued at the market price and according to the different sets of accounting principles implemented. The results of the analysis are:

  • presented through Business Intelligence and interactive reporting tools of immediate reading
  • distributed to recipients through a multi-platform Business Intelligence service, accessible via desktop, tablet and smartphone

    The wide range of analysis tools already available can be integrated and customized based on the Customer's needs. The quality of the analysis is granted by the fact that all outputs are based on SimCorp Sofia's data assets, whether they are portfolio situations or outputs of Risk and ALM area modules processing.

    The scope of the service can also be extended to monitoring the operational efficiency of the Customer's administrative processes.

    The technological infrastructure in support and the monitoring of the service can be managed both by SimCorp Sofia Online and by the Customer, according to the desired degree of externalisation.

    The SimCorp Sofia Data Mart is the element that completes the Decision Support System, allowing to store, in a permanent and unified data source, the data underlying the analysis provided. It provides:

  • a set of integrated extractors, which presides the data feed from the SimCorp Sofia database to the Data Mart
  • a data model conceived starting from SimCorp Sofia and configured so as to simplify the implementation of the analysis.

NAV calculation

This service includes the carrying out, by SimCorp Sofia Online, of all the administration activities for pension funds and unit linked portfolios, in particular:

  • Updating of holdings that represent the shares of internal funds, and current accounts and security reconciliations – Update and matching of holdings of funds in circulation, upload of incoming/outgoing movements, and matching of the funds in circulation with the balance communicated by the manager of the insurance portfolio, reconciliations of cash transactions and current account balances, and balances matching for securities holdings
  • Controls prior to the NAV calculation – Verifies the presence of the information necessary for the evaluation of the internal funds: control of prices and FX rates of portfolio holdings and control of the benchmark prices
  • Calculation of official NAV and successive controls – NAV calculation and ledger extraction, asset matching of the ledger using the NAV, prices control for holdings valued in the NAV, verification of overperformance fees if present, control of percentage variations of the net price of the fund shares, monitoring of the regulatory limits ex-post and production of reports for the Customer for the purposes of monitoring and publication
  • Periodic processing – Calculation of the monthly and year-end NAVs, extraction and asset matching of the ledger, annual extraction of statement of accounts with asset/liability and profit/loss matchings

Data references and market data database

This service includes the maintenance and updating of the asset information and market data of the SimCorp Sofia database. In particular, SimCorp Sofia Online is responsible for the following activities:

  • Maintenance of financial instrument data references – Registration of new financial instruments and maintenance of those already existing, management of events (coupons, dividends, CACS)
  • Updating of market data – Enrichment of the database with instrument and indices prices, interest rates, FX rates, and times series
  • Tables updating – Management and updating of SimCorp Sofia tables, e.g. the Portfolios (registering of new portfolios and parameter management), Current Accounts, Legal Entities, and Brokers tables

Portfolios’ updating

This service is aimed at the updating of situations of asset portfolios based on information flows received from managers. The service include:

  • Update of holdings Import of transactions received from asset managers and matched with evidence from custodian banks, registration of events and administrative movements, and management of the executed received from market brokers also using the platforms of order routing or interfaces with corresponding banks
  • Current account and asset matchings – Receipt of current account and securities deposit flows from custodians or third parties appointed by the Customer, settlement of cash transactions received, reconciliation of current account balances, matching of balances of security holdings, and the production of reconciliation reports

Data quality

The Data quality services allows users to define and perform completeness and consistency checks on data references and market data, holdings and transactions related to financial instruments managed in SimCorp Sofia.

The service supports data accuracy also in relation to production of the reporting defined by EIOPA in Solvency II regulation (QRT).

The service provides for the production of periodic information summaries on the data quality process efficiency in detecting and resolving data anomalies.

Securities accounting

This service includes the support relative to the production of the G/L and in particular:

  • Creation and maintenance of the ledger – Construction of accounting codes in SimCorp Sofia, according to Customer needs, using the appropriate linking rules between the accounting codes and the classifications used in the structure of the ledger
  • Extraction of accounting journals – periodic evaluation of financial instruments based on the reference accounting rules, periodic production of the accounting entries for transactions and financial flows and extraction of the files for the Company’s accounting system
  • Management of special ledger – Calculation of the opening balances at the beginning of the year, with the aim to align SimCorp Sofia and the accounting system of the Company

Users’ profiles

This service includes the management, on an ongoing basis, of the SimCorp Sofia user profiles and the access and modification rights to the data, based on the profiling tools available in SimCorp Sofia and in accordance with the Customer’s guidelines and policies regarding data access:

  • Creation and updating of user profiles – Creation of user profiles and the assigning of access and modification rights to data that are consistent with the Customer’s guidelines and policies, check-up of authorizations already present in SimCorp Sofia and initial clear-up
  • Periodic verification of user profiles – Carrying out of a periodic, complete check-up of authorizations and the production of results’ reports