Maximizing Returns from Operational Infrastructure

Restructuring Investment Operations
Basis Point Group was retained to review and improve efficiency by restructuring investment operations and the management of custodian, recordkeeper and external investment manager oversight processes. This client was the tenth largest state pension fund serving more than 670,000 members.

Establish Operational Infrastructure
BPG was retained to help establish operational infrastructure — reviewing the business processes and operations and recommending investment recordkeeping, performance, compliance applications and the approach to oversight — for the investment management unit of an east coast state.

Creating a Strategic Operations Plan
BPG was retained to create a strategic operations plan covering trading, portfolio recordkeeping and reconciliation, also establishing an organization to implement and support the activities required in the plan. This assignment was undertaken for the country's seventh largest holding company. BPG performed an investment recordkeeping and performance measurement vendor application assessment to support 100+ investment managers and trust officers. We also defined the infrastructure required to establish a new investment operation capable of accurately maintaining 20,000 individual and institutional accounts. BPG then consolidated and automated the activities of a multi-custodian reconciliation process, significantly reducing the errors, effort and risk.

Assessment of Mutual Fund and Institutional Operations
BPG assessed the investment, trading and client support organizational structure, processes, procedures and operating risk in the mutual fund and institutional operations area of a well-known Boston-based investment manager.

Improving Efficiency and Effectiveness
BPG advised a capital management firm with $25.2 billon of assets on operational performance measures to assess the efficiency of outsourcing arrangements with a large global custodian. BPG also completed a systems selection to replace the in-house asset-backed trading system and connect the trading operations with a clearing agency (MBSCC) to improve the efficiency and effectiveness of settlement processes.

System Requirements Analysis and Review
BPG performed a recordkeeping system requirements analysis and review for a capital management company ($28 billon in domestic value equity assets for institutional and mutual fund investors) to allow them to convert and recover quickly from a discontinued outsourcing arrangement.