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OPSMONITOR
The foundation of your due diligence program
Table of Contents
INTRODUCTION TO OPSMONITOR.........................................................................................................................1
OPSDATA................................................................................................................................................................. 2
MEDIA MONITORING WITH DOW JONES FACTIVA............................................................................................. 4
OPSMONITOR QUARTERLY UPDATES................................................................................................................... 6
OPSMONITOR FINANCIAL STATEMENT REVIEWS............................................................................................... 8
OPSMONITOR PRO................................................................................................................................................ 10
SERVICE MATRIX..................................................................................................................................................... 11
Table of Contents
INTRODUCTION TO OPSMONITOR.........................................................................................................................1
OPSDATA................................................................................................................................................................. 2
MEDIA MONITORING WITH DOW JONES FACTIVA............................................................................................. 4
OPSMONITOR QUARTERLY UPDATES................................................................................................................... 6
OPSMONITOR FINANCIAL STATEMENT REVIEWS............................................................................................... 8
OPSMONITOR PRO................................................................................................................................................ 10
SERVICE MATRIX..................................................................................................................................................... 11
OPSMonitor
is a risk management platform
for operational due diligence
OPSMonitor empowers investors to assess changes in operational
OPSMonitorPro extends the monitoring
risk across their portfolios. With daily updates and systematic monitoring,
process to include diligence review of
OPSMonitor identifies operational changes at each underlying fund and
manager monthly letters, a formal semi annual
manager. At the portfolio level, OPSMonitor dashboards deliver new tools to
update interview with each asset manager,
calibrate diligence across different asset classes and types of manager.
and real time diligence response to changes as
they occur – be it a change in service provider,
OPSMonitor integrates the power of the Dow Jones Factiva platform to
the resignation of a CFO, or issuance of a new
deliver daily media monitoring. Then, every quarter, Castle Hall delivers
offering document.
OPSMonitor Alerts to highlight changes across key diligence criteria.
Annually, Castle Hall reviews fund financial statements to identify issues
OPSMONITOR – THE FOUNDATION
such as a qualified opinion, change in auditor, or increase in Level 3 assets.
OF YOUR DUE DILIGENCE PROGRAM.
1
OPSMonitor
is a risk management platform
for operational due diligence
OPSMonitor empowers investors to assess changes in operational
OPSMonitorPro extends the monitoring
risk across their portfolios. With daily updates and systematic monitoring,
process to include diligence review of
OPSMonitor identifies operational changes at each underlying fund and
manager monthly letters, a formal semi annual
manager. At the portfolio level, OPSMonitor dashboards deliver new tools to
update interview with each asset manager,
calibrate diligence across different asset classes and types of manager.
and real time diligence response to changes as
they occur – be it a change in service provider,
OPSMonitor integrates the power of the Dow Jones Factiva platform to
the resignation of a CFO, or issuance of a new
deliver daily media monitoring. Then, every quarter, Castle Hall delivers
offering document.
OPSMonitor Alerts to highlight changes across key diligence criteria.
Annually, Castle Hall reviews fund financial statements to identify issues
OPSMONITOR – THE FOUNDATION
such as a qualified opinion, change in auditor, or increase in Level 3 assets.
OF YOUR DUE DILIGENCE PROGRAM.
1
OPSData
OPSMonitor begins with OPSData, the core component of Castle Hall’s
online diligence architecture. Castle Hall populates the OPSData online
Information is available online through the
platform based on information gathered using our proprietary questionnaires
a publication quality PDF. OPSData PDF is
and other manager and fund documents. For investors, OPSData replaces
automatically linked to the OPSDiligence
inconsistent, manager generated DDQ formats with a standardized and
database, meaning that the diligence reference
detailed ODD reference manual for every fund in a portfolio.
manual includes the most recent updates
OPSDiligence portal, or can be printed to
each time the PDF is generated.
Importantly, Castle Hall controls data entry, ensuring consistency and
completeness. Unlike generic data delivery tools, OPSData does not rely
OPSData is included free of charge in every
solely on managers to input data: instead, Castle Hall reviews all information
OPSMonitor engagement.
prior to entry into OPSData for quality and accuracy. We also provide the
analyst resources to follow up with managers to ensure timely data delivery.
Online Portal
2
Publication Quality PDF
Detailed Reference Manual
3
OPSData
OPSMonitor begins with OPSData, the core component of Castle Hall’s
online diligence architecture. Castle Hall populates the OPSData online
Information is available online through the
platform based on information gathered using our proprietary questionnaires
a publication quality PDF. OPSData PDF is
and other manager and fund documents. For investors, OPSData replaces
automatically linked to the OPSDiligence
inconsistent, manager generated DDQ formats with a standardized and
database, meaning that the diligence reference
detailed ODD reference manual for every fund in a portfolio.
manual includes the most recent updates
OPSDiligence portal, or can be printed to
each time the PDF is generated.
Importantly, Castle Hall controls data entry, ensuring consistency and
completeness. Unlike generic data delivery tools, OPSData does not rely
OPSData is included free of charge in every
solely on managers to input data: instead, Castle Hall reviews all information
OPSMonitor engagement.
prior to entry into OPSData for quality and accuracy. We also provide the
analyst resources to follow up with managers to ensure timely data delivery.
Online Portal
2
Publication Quality PDF
Detailed Reference Manual
3
Media
Media Monitoring
Monitoring with
with
Dow Jones Factiva
Investors need
OPSMonitor
Factiva
prompt
integrates
notification
the power
when of
their
the managers
globally recognized
are in theFactiva
news
OPSMONITOR FACTIVA:
platform
thearesources
of Castle
Hall’smedia
analystarticles
team. to
Factiva
draws
on
- and alsowith
need
robust archive
to retain
evidence
their
AN INSTITUTIONAL
duplicates
which clog
QUALITY
standard
ARCHIVE
internet
searches.
OF
DILIGENCE
Clients
INFORMATION.
then use OPSMonitor
several
thousand
diligence
process.sources, in 28 languages, from nearly 200 countries. Top
news sources integrated within OPSMonitor Factiva include The Wall Street
Journal,
TheisNew
York
Times, The
Morning
Herald,
the South
China
Castle Hall
proud
to partner
withSydney
Dow Jones
to offer
OPSMonitor
Factiva,
Morning
Post andthe
Le Monde”
which integrates
power .of the globally recognized Factiva platform with
the resources of Castle Hall’s analyst team.
Castle Hall’s analysts carefully curate news feeds to remove the false
positives
and duplicates
whichofclog
standard
searches.
Factiva draws
on thousands
sources,
in 28internet
languages,
from Clients
nearly then
200
use
OPSMonitor
access
content
via Top
the Dow
Factiva
portal,
countries,
acrossto35
years’curated
worth of
articles.
newsJones
sources
integrated
meaning
that all OPSMonitor
media
permanently
archived
andwithin OPSMonitor
Factiva –
and information
available toisevery
OPSMonitor
user
fully
licensed
from
the content
withNewswires,
no copyright
infringement.
User
include
The Wall
Street
Journal,provider
Dow Jones
The
New York Times,
preferences
allow either
dailySouth
or weekly
email
summaries
to be
sent to every
The Sydney Morning
Herald,
China
Morning
Post and
Le Monde.
member of the investment, ODD, risk and compliance teams.
4
Email Notifications
Direct Access to Factiva
Permanent Online Archive
5
Media
Media Monitoring
Monitoring with
with
Dow Jones Factiva
Investors need
OPSMonitor
Factiva
prompt
integrates
notification
the power
when of
their
the managers
globally recognized
are in theFactiva
news
OPSMONITOR FACTIVA:
platform
thearesources
of Castle
Hall’smedia
analystarticles
team. to
Factiva
draws
on
- and alsowith
need
robust archive
to retain
evidence
their
AN INSTITUTIONAL
duplicates
which clog
QUALITY
standard
ARCHIVE
internet
searches.
OF
DILIGENCE
Clients
INFORMATION.
then use OPSMonitor
several
thousand
diligence
process.sources, in 28 languages, from nearly 200 countries. Top
news sources integrated within OPSMonitor Factiva include The Wall Street
Journal,
TheisNew
York
Times, The
Morning
Herald,
the South
China
Castle Hall
proud
to partner
withSydney
Dow Jones
to offer
OPSMonitor
Factiva,
Morning
Post andthe
Le Monde”
which integrates
power .of the globally recognized Factiva platform with
the resources of Castle Hall’s analyst team.
Castle Hall’s analysts carefully curate news feeds to remove the false
positives
and duplicates
whichofclog
standard
searches.
Factiva draws
on thousands
sources,
in 28internet
languages,
from Clients
nearly then
200
use
OPSMonitor
access
content
via Top
the Dow
Factiva
portal,
countries,
acrossto35
years’curated
worth of
articles.
newsJones
sources
integrated
meaning
that all OPSMonitor
media
permanently
archived
andwithin OPSMonitor
Factiva –
and information
available toisevery
OPSMonitor
user
fully
licensed
from
the content
withNewswires,
no copyright
infringement.
User
include
The Wall
Street
Journal,provider
Dow Jones
The
New York Times,
preferences
allow either
dailySouth
or weekly
email
summaries
to be
sent to every
The Sydney Morning
Herald,
China
Morning
Post and
Le Monde.
member of the investment, ODD, risk and compliance teams.
4
Email Notifications
Direct Access to Factiva
Permanent Online Archive
5
The quarterly diligence process gathers information on material changes at
OPSMonitor
Quarterly Updates
the manager and fund level across ten factors:
• • Changes in manager corporate structure
• • Changes in firm assets under management
• • Changes in insider investment
• • Turnover in manager personnel
• • Legal and regulatory actions, claims and investigations
Each quarter, Castle Hall distributes OPSMonitor questionnaires to each
fund manager. Updates to core data points – assets under management,
headcount or service providers – are automatically reflected in OPSData,
This ensures the diligence reference manual for each manager and fund is
always up to date.
• • Changes in service providers
• • Changes in fund terms
• • Updates to trading controls
• • Updates to valuation controls
• • Errors or adjustments to the fund net asset value
The results of the monitoring process are delivered via update Alerts at the
individual fund level and through a dashboard showing status across the
entire portfolio. Investors can instantly see if their funds are “in the green”,
or if yellow or red flags have been identified during the monitoring process.
6
7
The quarterly diligence process gathers information on material changes at
OPSMonitor
Quarterly Updates
the manager and fund level across ten factors:
• • Changes in manager corporate structure
• • Changes in firm assets under management
• • Changes in insider investment
• • Turnover in manager personnel
• • Legal and regulatory actions, claims and investigations
Each quarter, Castle Hall distributes OPSMonitor questionnaires to each
fund manager. Updates to core data points – assets under management,
headcount or service providers – are automatically reflected in OPSData,
This ensures the diligence reference manual for each manager and fund is
always up to date.
• • Changes in service providers
• • Changes in fund terms
• • Updates to trading controls
• • Updates to valuation controls
• • Errors or adjustments to the fund net asset value
The results of the monitoring process are delivered via update Alerts at the
individual fund level and through a dashboard showing status across the
entire portfolio. Investors can instantly see if their funds are “in the green”,
or if yellow or red flags have been identified during the monitoring process.
6
7
OPSMonitor
Financial Statement Reviews
Risk Dashboards
Identify risk factors by
fund and across the
entire portfolio
The annual financial statement audit is one of the most important due
Once more, the results of the monitoring
diligence sources. Reviewing those financial statements is, however, a time
process are delivered via update Alerts at
consuming and challenging task.
the individual fund level, combined with an
extensive portfolio dashboard. Dashboards
OPSMonitor includes an interactive dashboard to identify potential financial
enable investors to track key financial metrics,
reporting risks, highlighting OPSMonitor Alerts across ten categories. Alerts
such as expense ratios and Level 1 / 2 / 3
consider factors such as the identity of the auditor, whether the audit is
valuation allocations across every fund in
qualified and issued on a timely basis, and whether the fund and underlying
their portfolio – analytics which are included
master fund has a high expense ratio or high allocations to hard to value,
automatically when Castle Hall clients add
Level 3 assets. OPSMonitor also seamlessly integrates the complexities of
their investments to OPSMonitor.
financial statements across both feeder funds and master fund structures.
Analytics
Interactive presentation of
financial statement valuation
data and expense ratio
comparison
THE 80/20 RULE
“OPSMonitor follows the 80/20 rule.
We help investors dedicate 80% of their time to the
20% of investments which have diligence issues
not spend 80% of their time getting to those 20%”
Christopher J.Addy, CEO
8
9
OPSMonitor
Financial Statement Reviews
Risk Dashboards
Identify risk factors by
fund and across the
entire portfolio
The annual financial statement audit is one of the most important due
Once more, the results of the monitoring
diligence sources. Reviewing those financial statements is, however, a time
process are delivered via update Alerts at
consuming and challenging task.
the individual fund level, combined with an
extensive portfolio dashboard. Dashboards
OPSMonitor includes an interactive dashboard to identify potential financial
enable investors to track key financial metrics,
reporting risks, highlighting OPSMonitor Alerts across ten categories. Alerts
such as expense ratios and Level 1 / 2 / 3
consider factors such as the identity of the auditor, whether the audit is
valuation allocations across every fund in
qualified and issued on a timely basis, and whether the fund and underlying
their portfolio – analytics which are included
master fund has a high expense ratio or high allocations to hard to value,
automatically when Castle Hall clients add
Level 3 assets. OPSMonitor also seamlessly integrates the complexities of
their investments to OPSMonitor.
financial statements across both feeder funds and master fund structures.
Analytics
Interactive presentation of
financial statement valuation
data and expense ratio
comparison
THE 80/20 RULE
“OPSMonitor follows the 80/20 rule.
We help investors dedicate 80% of their time to the
20% of investments which have diligence issues
not spend 80% of their time getting to those 20%”
Christopher J.Addy, CEO
8
9
OPSMonitor Pro
Service Matrix
OPSMonitor
OPSMonitor Pro extends OPSMonitor procedures to involve Castle
Hall’s diligence team, helping our clients assess and react to changes in
Media Monitoring
operational risk.
QUARTERLY: OPSMonitor Alert: quarterly questionnaire focused on
changes across 10 key due diligence criteria
In addition to the full suite of OPSMonitor procedures – media
QUARTERLY: OPSData update: revise diligence reference manual
to reflect current data points
monitoring, quarterly updates, and annual financial statement reviews
- OPSMonitor Pro includes:
DAILY: Response to manager/fund developments as they occur
(contact manager following media coverage; review and comment on
issuance of a new PPM, evaluate changes in service providers etc.)
Castle Hall prepares an OPSMonitor update in response to each event.
MONTHLY/QUARTERLY: Diligence review of manager letters and
other communications to identify issues impacting operational risk.
SEMI-ANNUAL: Castle Hall conducts a conference call with the
Manager to discuss material changes in the firm’s business and prepares
an OPSMonitor update memorandum.
ANNUAL: Castle Hall extends our financial statement review to
include a CPA analysis of balance sheet and income statement
presentation, together with footnote disclosures.
10
DAILY:
OPSMonitor Pro
ANNUAL: Financial Reporting Alert: analysis of fund audited
financial statements
Dashboard: Interactive presentation of OPSMonitor Alerts and
key portfolio diligence metrics, updated quarterly
Notifications: Real time email notifications of diligence updates
DAILY: Diligence response to manager / fund developments as they
occur. OPSMonitor memo prepared in response to material events
QUARTERLY/MONTHLY: Diligence review of manager letters
to identify ODD issues
SEMI-ANNUAL: Diligence discussion with the investment manager
to identify and evaluate operational changes; OPSMonitor memo
ANNUAL: CPA analysis of financial statement footnotes
11
OPSMonitor Pro
Service Matrix
OPSMonitor
OPSMonitor Pro extends OPSMonitor procedures to involve Castle
Hall’s diligence team, helping our clients assess and react to changes in
Media Monitoring
operational risk.
QUARTERLY: OPSMonitor Alert: quarterly questionnaire focused on
changes across 10 key due diligence criteria
In addition to the full suite of OPSMonitor procedures – media
QUARTERLY: OPSData update: revise diligence reference manual
to reflect current data points
monitoring, quarterly updates, and annual financial statement reviews
- OPSMonitor Pro includes:
DAILY: Response to manager/fund developments as they occur
(contact manager following media coverage; review and comment on
issuance of a new PPM, evaluate changes in service providers etc.)
Castle Hall prepares an OPSMonitor update in response to each event.
MONTHLY/QUARTERLY: Diligence review of manager letters and
other communications to identify issues impacting operational risk.
SEMI-ANNUAL: Castle Hall conducts a conference call with the
Manager to discuss material changes in the firm’s business and prepares
an OPSMonitor update memorandum.
ANNUAL: Castle Hall extends our financial statement review to
include a CPA analysis of balance sheet and income statement
presentation, together with footnote disclosures.
10
DAILY:
OPSMonitor Pro
ANNUAL: Financial Reporting Alert: analysis of fund audited
financial statements
Dashboard: Interactive presentation of OPSMonitor Alerts and
key portfolio diligence metrics, updated quarterly
Notifications: Real time email notifications of diligence updates
DAILY: Diligence response to manager / fund developments as they
occur. OPSMonitor memo prepared in response to material events
QUARTERLY/MONTHLY: Diligence review of manager letters
to identify ODD issues
SEMI-ANNUAL: Diligence discussion with the investment manager
to identify and evaluate operational changes; OPSMonitor memo
ANNUAL: CPA analysis of financial statement footnotes
11
NORTH AMERICA
Montreal
1850 Panama, Suite 415
Brossard, QC J4W 3C6, Canada
Tel: +1 450 465 8880
Toronto
First Canadian Place
100 King Street West, Suite 5600
Toronto, ON M5X 1C9, Canada
Tel: +1 450 465 8880
ABOUT CASTLE HALL ALTERNATIVES
Castle Hall, with offices in North America, Europe and Asia
has completed comprehensive due diligence on significantly
more than 1,000 fund structures world-wide. With more than
30 professionals dedicated exclusively to operational due
diligence, Castle Hall deploys one of the industry’s largest and
most experienced due diligence teams.
Halifax
84 Chain Lake Drive, Suite 501
Halifax, NS B3S 1A2, Canada
Tel: +1 450 465 8880
EUROPE
London
53 Davies Street,London
United Kingdom, W1K 5JH
Tel: +44 20 7129 1422
Zurich
Swiss Analytics
Marktgasse 12
CH-8001 Zürich
Switzerland
Tel: +41 (0)44 296 90 60
ASIA
Sydney
Select Fund Services
Level 5, 10 Spring Street
Sydney, New South Wales
Australia, 2000
Tel: +61 (2) 8252 2200
CONTACT
castlehallalternatives.com