Centre takes everything but alpha out of the equation
A single platform for operational efficiency
In 2021, Enfusion’s single PMS, OEMS, and accounting platform, along with Managed Services, replaced multiple separate systems and functions (trade execution, portfolio accounting and reconciliation, and trade transmission and custodian connectivity), which has significantly improved operational efficiencies and has allowed Centre to concentrate on investment management. “It allows us to focus on managing money and supporting business development, and not having to do in-house all the necessary yet important operational matters.” said James Abate, Founder, Managing Director & Chief Investment Officer, Centre Asset Management.
Having a single platform allows Centre to generate orders live to the street via Enfusion’s OEMS. In combination with integrated data from Bloomberg, they benefit from a real-time and accurate view of the entire portfolio and can easily adjust order size based on a live intra-day NAV. The net result is better risk awareness and better pre- and post-trade compliance. Furthermore, daily cash inflows and outflows to the funds are reflected via a simple upload process and can be equitized or monetized easily in alignment with the respective fund strategies.
“It allows us to focus on managing money and supporting business development, and not having to do in-house all the necessary yet important operational matters.” — James Abate, Founder, Managing Director & Chief Investment Officer, Centre Asset Management.
Full-transparency and accuracy of data
Enfusion also eliminated the need for bespoke integrations for Centre’s risk management platform with its portfolio accounting, and trading systems, as well as SWIFT connectivity to underlying custodians and administrators. “Sometimes even small changes to these systems by the vendor would be disruptive to our bespoke coding that integrated them causing time consuming remedies for breaks and failures. We’ve had a near complete elimination of mistakes and trade breaks since using Enfusion and have full confidence in positions integrity across the funds, each with different custodians and fund administrators,” Abate added.
In addition, Enfusion Managed Services handles Centre’s middle-office functions, including daily reconciliation, corporate action processing, trade affirmation, and trade break resolution. Centre no longer experiences trade settlement delays due to common reasons such as local foreign exchange fees and commission calculations, while having total confidence in the proper capture of stock splits, dividend withholding taxes across jurisdictions, etc. Centre now enjoys full transparency and accuracy of data and time savings that ultimately enable the team to focus on generating alpha and managing risk.
“I have full confidence in our middle office capabilities, even though they don’t reside internally. Even as a boutique firm, I feel that our middle-office capabilities are best-in-class,” says James Abate.
Putting the focus on Centre's strengths
Front-to-back capabilities and the support of Enfusion’s Managed Services allows Centre to focus on its one ultimate priority—managing money and delivering top performance. Centre’s American Select Equity Fund (offered in US mutual fund form and offshore UCITS) ranked as the top-performing fund in Morningstar’s US large-blend category during the one-, three- and five-year periods for the year ended December 31, 2022.
“The beauty of Enfusion is that it allows us to focus on research and managing money and eliminates a lot of the issues that take away from doing that. As someone who transitioned from very large investment firms before starting Centre, people tend to underestimate the impact and time requirements of handling those operational issues. I truly wish Enfusion existed at our founding.”
Centre Asset Management is a fundamentally-driven specialist active asset manager. Their differentiating approach to security selection is rooted in an Economic Value Added (EVA) methodology to investment analysis, combined with a value-added portfolio construction framework that has a strong awareness of risk, particularly downside volatility. Centre manages two principal strategies in fund advisory and sub-advisory mandates accessible in multiple countries.