Capricorn, Viteos migrate from BNY Mellon

Capricorn Fund Managers has selected Viteos for a complete middle office services solution on a co-sourcing model.

Capricorn, a Johannesburg- and London-based hedge fund manager, had earlier outsourced its Fund Administration and Middle Office services to BNY Mellon Investment Servicing (International) Limited (BONY). As part of a periodic strategic review, Capricorn initiated an RFP and selection process, separating its middle office provider and fund administrator.

Capricorn looked for its Middle Office provider to:

·         Retain Linedata Beauchamp as its portfolio management system which had the entire history for all the funds (earlier provided by BONY);

·         Put in a structure where middle office was independent of the fund administrator;

·         Select a credible supplier who could transition the middle office process and collaborate with Linedata, BONY, and Capricorn;

·         Provide an institutional level middle office capability, working with multiple fund administrators, thereby ensuring scalability, wider asset class coverage and support based in London and Johannesburg.

Capricorn decided to opt for a co-sourcing model, where the technology and data is owned and retained by the Manager with the middle office outsourced to Viteos. Viteos says this unique structure and engagement model gives it control and supervision of its data and de-risks any cash, positions and trade breaks, which are reconciled and resolved between PB(s), Fund(s), Fund admin(s) and middle office daily by Viteos.

The transition of the middle office process from BONY to Viteos was actively supported by the Linedata team in London, which helped in setting up the new licence with all the existing interface, reports and fund set-up - along with historical data migration. The data and process migration including testing was completed over four weeks, with Capricorn going live, in advance of the existing service with BONY ending on December 31 2014. Capricorn, along with Viteos Fund Services and Linedata, has demonstrated a smooth, quick and complete transition of its fund administration and middle office services in less than 30 days.