Endowment and Non-Profit Organizations

VestServe’ Solution for Nonprofit Organizations’ Investments

In today’s fast moving and sophisticated investment climate endowments and other nonprofit organizations require robust investment management systems that are designed to meet their specialized requirements. VestServe’ designed its Investment Management System, (IMS) as a single solution that will help nonprofit organizations operate more efficiently, realize lower costs and provide improved customer service to executive directors, board members, donors and others funding its operation. IMS provides additional capabilities that will enable users to manage their underlying assets with productivity tools such as integrated performance measurement, portfolio modeling/compliance and flexible reporting.

Unitized Accounting:

Managing endowments and other restricted accounts requires specialized unitized accounting. IMS’ flexible accounting engine provides full daily accrual and pooled funds accounting (unitization). All activity and accounting is consistent across the enterprise because a single data base serves as its repository. Using these tools will help to ensure the accuracy of your portfolio management decisions.

Accounting features:

  • Accounts for investment pools with varying distribution rules for shares, income, spending, and gains.
  • Accounts for most any negotiable instrument including sophisticated derivatives.
  • Provides recognized and unrecognized income and gains for any period.
  • Automatically projects cash flows and valuations you choose, enabling “what if” and side-by-side scenario analyses.
  • Supports required fee structures at every level – administrative fees, gift fees and investment management fees.
  • Income statement and balance sheet features.
  • Reconcile daily activity with custodians using reports that show matched and unmatched records for correction or deletion.
  • Export journal entries to third party General Ledger systems.
  • Complete real-time cash accounting and management. Total liquidity is available at all times.
  • Strong audit capabilities track all value changes with “user rights” restricting access to history.
  • Real-time integrated compliance saves time and improves accuracy.

Integrated Productivity Tools:

(Read below or Click here for detailed description of Productivity Tools – Performance Measurement, Modeling/Compliance and Scenario Analysis, and Query and Reporting Capabilities)

Integrated Performance Measurement:

Fully GIPS Compliant - IMS can help you maintain full GIPS compliance. Many return analytics are readily available, including Time Weighted (Modified Dietz) Rate of Return, IRR (Internal Rate of Return) plus others. Returns can be calculated either net or gross of fees, using trade-date or settlement-date accounting, with and without accrued receivables and payables, and with or without cash.

Performance measurement tools that support reporting and decision making include:

  • Many price sensitivity, yield, and return measures are available.
  • Performance and analytics reported over any period or periodicity.
  • Asset allocations and contribution returns broken out by country, currency, sector, sub-sector, asset type, portfolios or any desired group.
  • Use integrated analytics such as Sharpe, Sortino, std. deviation, beta, yield, duration, convexity, Rsquared when evaluating investments.
  • Portfolio contribution and attribution.
  • Group portfolios into composites and track performance over time.

Integrated Modeling/Compliance and Scenario Analysis:

Reliable portfolio-management tools are essential for making accurate and timely decisions for your clients. With IMS, managers can design portfolio models to keep holdings within specified guidelines. Whenever a modeling guideline is violated, IMS can suggest trades, based on pre-established rules, to bring the portfolio in line with its objectives. This ensures that your clients’ strategies are protected efficiently and precisely.

Additional modeling/compliance tools that facilitate operating efficiencies:

  • Perform “what if” scenario analysis during rebalancing or when performing a single trade to view how the impending action will affect a portfolio’s performance.
  • Use integrated rules based modeling/compliance to keep portfolios in line with their models or benchmarks.
  • Manage and report on portfolios through unlimited user-defined reports using IMS’ unique “Design Tool”.
  • Project cash and perform liquidity analysis.
  • Restrict access to portfolio information based on “user rights”.

Integrated Scenario analysis enhances decision making within modeling/compliance

Scenarios is a powerful rebalancing and trading tool that allows a portfolio manager to review the effects a specific trade will have on a portfolio’s performance before the trade is executed. Several trade scenarios can be reviewed concurrently. Analytics are displayed in real time to help select the trade alternative that best meets desired objectives.

Extensive Query and Reporting Capabilities

IMS is delivered with a complete set of standard reports which can be scheduled to print on queue as required. But the real flexibility of the reporting engine is in its ability to immediately turn any screened query into an “ad hoc report”, which can then be modified to meet your exact needs.

With our user-friendly interface, users can create customized reports to achieve any precise goal.

  • Screen any query and then immediately turn it into an “ad hoc” report. Then update (drill down to) to any report field (including user-defined fields) and refresh it to show the report with the new data.
  • Using IMS’ unique drag and drop “Design Tool” users can add fields, define groups and subtotals, and create their own formulas and filters to create complex reports that can graphed immediately.
  • Because IMS maintains a complete history and projects future activity, users can report on any time frame, either future or historic. Any report can be exported to Excel, Word, and Crystal Reports, or mail-merged for subsequent presentation to clients and senior management. Reports can also be directly output to a fax, PDF, or a formatted e-mail to be sent to multiple recipients.
  • Customized reports can be delivered (designed to meet various customer levels or individual needs) to your web portal for push or pull customer reporting.