Streamlining investment operations with Canopy

The challenge

Jewelake Management, a boutique firm focused on trading and investments, faced numerous issues consolidating clients’ accounts. Every time a client needed to review their investments, the request would cause stress in the office. The small team would have to use four different parameters. They always involved manual Excel work, leading to significant problems and requiring pulling in traders and investment officers in accounting.

This took significant manpower each time. Sometimes clients would give only one or two days’ notice, leading to a constant rush. It was challenging to get a holistic picture. For example, the P&L information was often based on balance sheets, as some large private banks provide lengthy bank statements that make it hard to distinguish between revenue and gains throughout the year.

Realising that they needed to address this issue, the firm initially attempted to build its own system from scratch. After spending a few months on this approach, they concluded that it would be more cost-effective to seek a service provider, as the infrastructure expenses did not make sense.

The search

The firm mainly consists of a lean team of investment professionals; therefore, they lacked extensive back-office support. To address this gap, they sought a solution that prioritised integration with banks through APIs, as well as the use of a prime broker.

Secondly, operating from the buy-side with high-frequency trading, it was essential to be able to classify and value different assets accurately. Lastly, cost efficiency was also a key factor in their decision-making process.

Initially, the team explored the information reporting systems of their current banking partners. However, they found that some of these reporting systems were among the most expensive options available.

Additionally, most clients have more than one private bank. If they were to use one of these private banking systems, access to information from their other banks and prime brokers would be a concern. This major issue prompted them to consider other third-party solutions.

Choosing Canopy

When considering their options, while US platforms were largely popular, the firm was influenced by the fact that they are not a US-based, nor are their clients. Many of the features offered by these popular platforms were specifically tailored to US clients and did not meet their needs.

Conversely, Canopy’s base in Singapore was a significant advantage, especially when it came to technical trading issues and the necessity to avoid tax time discrepancies. They also valued the company’s pre-existing integrations with all the banks they use.

Moreover, Canopy showed a willingness to import all API data from their backend, which would be beneficial should they decide to switch banks in the future. And they also had the ability to white-label a solution that would cater specifically to their clients’ needs.

While Canopy is only partially involved in the trading side, the platform provides valuable insights into the steps taken.

The impact

The implementation process went smoothly for the firm. Canopy first reviewed all of the firm’s banking partners to evaluate the availability of APIs. They then assigned a dedicated team and designated an individual to work closely with the firm to ensure a streamlined process for managing each bank account. After that, Canopy conducted a test run lasting about two to three months, which ultimately led to a seamless experience.

Since adopting Canopy, the firm has seen a significant improvement in both information access and performance. They can now pull data ranging from equity to fixed income across all desired sectors, which has proven to be incredibly beneficial. One of the major advantages is the ability to access this information daily or whenever required for reporting purposes.

In addition, Canopy recently launched a mobile version, enhancing the ease of updating clients. This feature allows the firm to easily discuss return expectations with their clients and families, as they can pull annual P&L data across sectors to illustrate what performed well and what did not. Furthermore, the firm appreciates that Canopy is a third-party provider with secure encryption technology, which alleviates concerns about information integrity and allows them to balance data between different banks.

“This tool allows us to spend 100% of our time focusing on clients, from legacy issues to investment. We believe it’s a great tool that reduces the cost burden. Overall, we’re quite happy and have no complaints.” – Mark Wang, CEO of Jewelake Management. 

The takeaway

Mark notes that in today’s digital age, relying solely on manual processes, such as handling bank statements and using Excel, is outdated and limits one’s potential.

He notes that a clerk or a secretary cannot simply generate information needed for risk models and deeper analysis; it requires a more advanced approach.

Mark, who’s gone through the process, advises family offices to start by setting aside a budget. Even a modest investment is worthwhile, as this step can significantly enhance their operations. For example, after applying Canopy, clients have a more user-friendly interface to their consolidated portfolio, with real-time data;  EAM can generate personalised reports in less than 10 minutes, greatly improving the efficiency of communication with clients. When discussing investment attribution, the error rate of data is significantly reduced, eliminating the need for complicated manual verification one by one.

Family offices should not let cost concerns dominate their decision. Experiencing the value of these systems firsthand is essential to understanding the additional insights they provide. Finally, it is important to allocate dedicated time for training and onboarding, as this commitment is essential for a successful transition.

The future

As Jewelake Management continues to expand, it intends to work with Canopy to tailor the products further. Moreover, the firm would like to explore how AI can help improve efficiencies, reduce costs, or add more product functionality. Jewelake is participating in Canopy’s new AI initiative to create a copilot for wealth management. They are expecting such copilot to add more manpower and brainpower to the industry. Finally, they want to work with Canopy to build a risk modelling feature, which would be useful in trading and investing.