NewSouth Capital Management has implemented the newly enhanced version of Advent Corporate Actions (ACA) from Advent Software, as well as migrating to Advent Portfolio Exchange (APX).
NewSouth Capital Management, which manages approximately
$1.4 billion in assets, has been a client of Advent Software since June 1986, when it was one of Advent’s first 100 clients to use Axys, its original portfolio accounting product, Qube, a CRM module, and ACA for the collection of corporate actions data on its holdings.
NewSouth was also in at the start helping with the testing and develop-ment of the APX platform. APX was launched in 2005 to replace Axys.
When the firm migrated to APX, it simultaneously upgraded to the APX-enhanced version of ACA to simplify the process of compiling data from key sources and updating portfolios on corporate actions that affect portfolio values. This data is essential to ensuring accuracy in valuations, trading and reporting.
Among the new features available in ACA for APX is the ability to have multiple updates on reorganization transactions in real-time, automati-cally revising fair market values, cash-in-lieu and cost bases. This new functionality enables efficiency gains, eliminating the need to back out and repost transactions.
“A client automatically sends us a list of security holdings nightly,” says Alison Swabowicz, product manager, Advent Corporate Actions. “ACA cross-references these securities against our database and provides them with holdings-based reports and market effective transactions for mandatory US equity and ADR events. Reports contain preliminary and effective notification of events and include consolidated data from multiple vendors, including CCH Capital Changes, Xcitek, Interactive Data and Telekurs,” she explains. “In addition, Advent corporate actions specialists analyze and confirm details such as cost basis and taxability, trouble-shoot complex events and build transactions for mandatory US equity and ADR events.”
According to Swabowicz, the Advent offering enables clients to proactively react to events without having to wait for data from custodians.