Red Deer, an investment management fintech, has announced that its Research Management solution has been selected by hedge fund Engadine Partners LLP, to enable the firm to benefit from a flexible, tailored and operationally efficient approach to MiFID II.
Engadine will use the solution to manage inducement risk, track research consumption across channels, assess value, and manage budgets in compliance with MiFID II regulations. The firm will subsequently be able to conduct broker votes based on these consumption and valuation metrics.
“We chose Red Deer as we are looking to automate and evolve our broker vote under MiFID II, combining ‘top down’ qualitative measures with a broader ‘bottom up’ evaluation methodology, based on an understanding of research costs and accurate in-house consumption metrics,” said Chude Chidi-Ofong, Chief Operating Officer at Engadine. “With Red Deer, we can avoid complex and time-consuming reconciliation issues, whilst also gaining a clearer picture on which broker resources are being consumed and adding value.”
Red Deer’s Research Management solution captures and attributes research consumption across all channels including email, chat and voice, giving buy-side firms the most accurate view of their research value. This approach has the added advantage of preventing inducement across the firm. Red Deer’s Outlook plugin and mobile application mean that firms can be MiFID II compliant quickly, with minimal disruption to their investment process. Advanced budget management allows firms to allocate budgets at the fund, strategy or individual level and track contributions from hard and soft budgets, with alerting to ensure budgetary thresholds are maintained.
Engadine will use the solution to manage inducement risk, track research consumption across channels, assess value, and manage budgets in compliance with MiFID II regulations.
“Red Deer is delighted to welcome Engadine to our growing client community and we are pleased that we can add value to their investment process,” commented Henry Price, CEO of Red Deer.
“Adding a bottom up evaluation to the research review is essential and we are seeing hedge fund managers switch to such an approach once they realise its benefits and ease of adoption. In addition, we are still seeing the requirements for board and investor research reporting evolve, as clients start to see the meaningful data accrued from a year’s consumption. The data insight gained through the solution is addictive, valuable and allows firms to better understand and assess their research consumption in a way that still has not been fully tapped by the marketplace,” added Price.