Skip to content
operational-alpha

How Limina helps asset managers

Generate operational alpha

What would it do to your competitiveness and bottom line if all your portfolios suddenly performed 2-10 bps better?

With Limina’s Investment Management System, you can reduce your cash buffer and systematically increase your performance.

The alternative cost of cash drag

Limina’s surveys of asset managers show that Investment Managers keep a 0.5-2% cash buffer. The range is generally consistent across AuM levels and asset classes. It depends mainly on the systems used.
Cash Buffer
operational-alpha

What if you could reduce your cash buffers?

With the right system it's possible - reducing cash buffers means more capital to invest, and likely contributes to increased performance.

Tools to deploy more cash

By getting a clear picture of cash and exposure both today and into the future, your portfolio managers can keep a lower cash buffer.

With Limina, your investment team gets access to complete, accurate and real-time forward-looking cash and exposure ladders.

 
Cash ladder
REDUCING CASH DRAG / INCREASING OPERATIONAL ALPHA

Key considerations

To be able to minimise your cash buffer, it's imperative to have a clear view of all known - and estimated - cash flows impacting your portfolios, to ensure you are protected against overdrafts. This  is especially complex when investing in asset classes and markets with different settlement cycles (T+1, T+2, etc) and requires sophisticated system support.

Some examples of features that can help lower cash drag are:

1
Strong cash & exposure ladders
Forward-looking cash & exposure simulation as part of order-raising
2
Complete portfolio data
Real-time, complete cash and position data (no FX or cash missing)
3
Quality-controls
Trustable data, preferably via automatic data quality controls
4
Lifecycle states
Control how to view impact from open orders - e.g. full order / only filled portion / only allocated portion.
5
Projections
Include or exclude preliminary inflows & outflows, projected dividends and coupons.

Calculate for yourself

Limina has helped asset managers increase performance by 2-10 bps by reducing cash buffers. Calculate for yourself what returns you might be leaving on the table with our cash drag calculator:
USD
Annual management fee increase after years

Yearly added return:%
AuM in years without Limina: M USD
AuM in years with Limina: M USD
AuM increase with Limina: M USD

Assets under Management today: B USD

Annual expected return: %

Average management fee: %

Years using Limina: years

Additional cash invested with Limina IBOR: bps (%), e.g. from % to 99.7%

Let's talk about

How we can help you generate operational alpha

Contact-Us

 

Learn more about how Limina helps clients: