We do not supply data such as security master data, yield curves and benchmarks, as the vast majority of our clients already have data supply agreements in place.
Instead, the user sets up and controls the data required to Flametree. This is not a major task as the system only requires three main sources of data: security master, weights and returns, and yield curve data. CPI factors, LIBOR rates, and paydown numbers may also be required, depending on the types of securities you hold.
Flametree offers straightforward system integration, via local deployment or a RESTful API to access Flametree in the cloud.
Flametree is a software component rather than a front-to-back office solution. Although popular in the past, such monolithic systems present numerous disadvantages for the client, including long installation times, very high cost, and significant business risk.
Instead, we recognize that that our client needs are often met using a best-of-breed, component-based approach, with internal development and external solutions mixed together.
While we can supply you with all the components of a PMAR system, you may find that FIA run in tandem with another vendor’s system offers the best match to your requirements.
Flametree includes a highly flexible, user-configurable reporting engine that generates drilldown reports on all outputs, ordered and grouped as required. Our Wiki holds extensive information and examples on how to configure reports.
Results and reporting
Flametree runs numerous internal checks to ensure that the aggregate contribution from all sources of risk is identical to the returns implied by the raw inputs. Therefore, the bottom-line return in your attribution reports is always identical to the return from your performance team. This ensures stakeholder confidence in your reports and means that you never need be concerned with reconciliation issues.
Return contributions can be smoothed using Carino or geometric algorithms. Other smoothing algorithms are available on request.
A full range of ex-post statistics is available from Flametree, including tracking error attribution.