Singapore-based structured products platform provider AG Delta, has partnered with Thirdrock Group (Thirdrock) to digitalise the investment management firm's product platform through AG Delta's digital wealth solution.
AG Delta's digital wealth platform will be fully integrated into Thirdrock's existing technological architecture and bolster the firm's wealth management, wealth planning, client relationship, risk analysis and compliance capabilities. Integrated tools that allow client advisors to manage client relationships and portfolios more effectively, combined with the digital wealth platform's 'high powered compliance monitoring process', will empower Thirdrock's client advisors and enhance their value proposition, according to Andrew Au, AG Delta's chief executive.
"We are very pleased to extend our wealth network further whilst introducing new transaction, revenue share and business delivery models to all market participants beyond traditional software licensing," said Au. "This is another step in a concerted strategy to powering an industry ecosystem that makes digital investments more accessible, safer and relevant."
With centralised risk management, reporting and analysis, Thirdrock's clients will also benefit from a clear overview of their portfolio and an ability to drill down to gain a deeper understanding of their assets. In addition, the platform leverages Artificial Intelligence (AI) and big data analytics, proactively identifying relevant investment opportunities for Thirdrock's client advisors, portfolio managers, and their end clients. This will allow for real-time access to different advice and market information, while synthesizing and distilling the information, leading to sharper investment strategies to enhance portfolio performance, according to Au.
"The collaboration with Thirdrock will leverage AG Delta's (...) digital, regtech and best execution wealth platform and network with custodian/private and investment banks," said Au. "Thirdrock works with numerous custodian banks and external asset manager (EAM) desks and deal with anything from research, ideas, pricing and execution of traditional cash securities or derivatives to fund, fund of hedge fund, actively managed certificates (AMCs) and private equity and alternatives."
Thirdrock has been actively seeking 'cutting-edge technological solutions that can meet increasingly onerous regulatory demands and allow us to provide superior client service', according to Melvyn Yeo (above), executive partner and investment committee chair at ThirdRock.
'Our clients today expect more from their wealth managers (...), more choices with greater accessibility and enhancing the framework in making good risk-adjusted investment decisions for their portfolios,' said Yeo.
Thirdrock works with numerous custodian banks, buy-side institutions and research houses for investment research and trade ideas, which is currently manually filtered for house views. This process will be entirely automated, with information immediately filtered and auto-tagged to product offerings in their product shelf which are compliance-¡-proofed from a suitability and Mifid 2 perspective.
A senior market source said that AG Delta can help banks to resolve the problem that causes most angst which is to streamline distribution for their RMs and end clients. "This is no longer about connectivity but about helping to address a number of requirements around target market, products suitability, transparency, etc. as well as provide a more granular approach to portfolio construction and portfolio management," said the source, adding that platforms are moving towards becoming the 'Netflixes' and 'Apple stores' of the financial market.
"AG Delta removes barriers to executing financial investments and makes them more suitable, safer and appropriate," said Au. "Additionally, our platform allows Thirdrock's team to execute deals with confidence, safe in the knowledge that they are in compliance and adhering to all relevant regulations."
AG Delta's Digital Wealth Platform will encapsulate research and trade ideas around Thirdrock's Investment Committee views and is expected to be fully deployed at Thirdrock by Q3 this year.
Earlier this year AG Delta and Soho Capital partnered to rebrand and digitally revamp the actively-managed certificate (AMC) platform that was first spearheaded by private banking and asset management integration consulting company Synpulse (now Strategy Data Exchange - SDX) in early 2017.
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