The funds management industry plays a critical role in supporting New Zealanders, their families and corporate investors to optimise and grow their investable capital over time.
Our team brings considerable real-world experience to bear to support funds management clients respond operationally to the challenges and opportunities arising from evolving technologies, increasing regulatory expectations, changing investor sentiments and, at times a volatile, investing environment. Our expertise spans risk management, compliance, OMS/EMS systems, reporting, fund accounting, registry, business process management and client servicing functions.
Operating Model Design and Implementation
The ability to scale FUM in an efficient and effective manner requires a thoughtfully developed and continually evolving operating model. Growth in FUM does not necessarily translate to scale benefits where the level of product and operational complexity is high.
Our team can advise on the development of funds management operating models be it from a “whole of business perspective” or centered on a particular function. We can bring together the required platform, process and people perspectives, work with you to develop a carefully sequenced implementation pathway and augment your team with experienced project expertise to execute.
System and Vendor Evaluation, Selection, Procurement & Transitions
The decision to insource or outsource a function(s), and to buy or upgrade systems, often have high stakes. A wrong choice and/or a poorly managed transition can have very serious operational, reputational and/or regulatory consequences.
Mosaic has deep experience in leading on its clients' behalf engagements with potential vendors to evaluate, select and procure the “best fit” option and, where required, support the establishment a robust commercial arrangements. Its experience includes OMS/EMS, registry, fund accounting and custodial service and technology providers.
Having made a decision to change a vendor, considerable risk lies in ensuring and effective transition. Mosaic can bring significant project leadership, change management, business analysis and testing capabilities to augment client-side implementation teams as required and in doing so ensure a transition is executed in a high quality way.
Strategy
Changing investor expectations and objectives (including those related to ESG matters), coupled with a rapidly evolving set of security and asset class investment opportunities, require fund managers' product and service offerings and the efficiency of supporting fund implementation structures to be constantly reevaluated. Consolidation of schemes and rationalisation of fund structures is likely to be an ongoing trend as the industry scales and sub-scale players and/or those with legacy offerings consider their options.
Our team has supported clients to evaluate their product options and service process uplift opportunities in the context of these drivers. We have supported implementation of new product offerings and scheme amalgamations.
Client Work Examples
Operating Model Design and Implementation
Mosaic led a strategic review of a large fund manager's operating model, assessing current state strengths and weakness, developing agreed design principles for a future state view aligned to the firm's strategy, designing that future state view and a supporting implementation pathway.
Our team has worked with two large fund managers to review their portfolio of project initiatives, and build out a clearer programme of work more effectively aligned to enable those firms' strategic imperatives.
Having supported the due diligence process for a large fund manager client to acquire another manager of comparable size, Mosaic facilitated the development of future state operating model phases aligned with post merger integration objectives.
Registry and Funds Administration Evaluation, Selection and Procurement
Mosaic has led a range of engagements involving the review and/or evaluation, selection and procurement of registry administration services for funds management firms. It has supported the migration of over seven large schemes spanning KiwiSaver, superannuation and managed funds offerings. These included migration of insourced capability to a new vendor, and transitions between vendors.
Our team has also lead and/or supported similar processes and transitions of fund accounting, unit pricing and custody arrangements.
OMS evaluation, selection & procurment
Mosaic has led over 10 evaluation, selection and procurement processes for active and passively focused investment management firms, including a sovereign wealth client.
Our work included both buy-side and sell side options and considered a wide range of potential global vendor solution options. We maintain a high level of engagement with solution providers and vendors to ensure knowledge currency is maintained as technologies rapidly evolve.
Strategy
Mosaic was engaged by an active choice KiwiSaver fund to validate the existing scheme, and by extension, the current administration value chain and pricing structure. This work and subsequent financial modelling informed the decision to restructure the scheme into its current state.
Mosaic supported a large funds management client develop its product strategy as part of its post merger integration planning. We also provided project management and business analysis support to implement a consolidation of two KiwiSaver Schemes.
A large insurer engaged our team to evaluate and recommend product opportunities from a funds perspective that would compliment its broader risk offering.
Governance, Risk and Compliance
Mosaic's GRC team led a review of the risk management architecture and components in place for two large funds management entities who were being integrated as part of a post merger integration programme. Using Mosaic's Enterprise Risk Management Framework (“ERMF”) our team undertook and assessment of the components in place for each entity and provided recommendations to establish a “best of both” comprehensive ERMF.
Mosaic's
GRC team undertook a controls review and uplift assignment for a large funds management client. This work supported the deployment of a regtech solution across the business.
As part of a broader review of a large fund manager's front and middle office technology and operational processes, our team working in conjunction with client-side risk specialist's, assessed the firm's current and proposed future state front office control environment.
Unit Pricing Model Validation
Our client required periodic validation of their unit pricing process and outputs for a range of products including default KiwiSaver funds. The product range included PIE, life PIE and non-PIE funds. Mosaic was engaged ahead of two-tier one accounting firms to complete this work based on deep subject matter expertise and operational experience.
Custody Services
Our client required a third-party review of their domestic custody operation to confirm strategic fit, market opportunities and to validate their thinking on future direction. Mosaic applied a top-down approach, referencing back to a vision and corporate strategy relative to market opportunities.
Mosaic was engaged to review end-to-end operational processes for a middle-tier domestic custody client. This involved applying lean principles to current state processes, identifying the scope for improvement, defining future state and then providing a road map for the improvements and changes required to achieve the future state. These changes covered process, capability requirements and management aspects.
Mosaic’s principal consultants were engaged to provide a complete “turn-key” international custody replacement for a leading funds management provider, from JP Morgan to Citigroup. This engagement included market survey, selection, management of the contractual process and the asset transfer process.
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