RiskCafé offers hedge fund and treasury portfolio warehousing and reporting services, providing fund managers, administrators, auditors and corporate clients with essential and advanced valuation, administration and risk management information.
Financial Services Board notice 52 of 2015 (BN52) highlights the requirement on Hedge Funds for the appointment of an independent risk and valuation provider as part of the new Retail and Qualified Investor Hedge Fund regulations under the CIS act.
RiskCafé has been providing independent risk and valuation products and services to the Hedge Fund industry for many years and is the natural choice for managers when it needs to -
Par 22.(3)(f): ensure that an appropriate level of independent review is undertaken for each valuation ...
Par 24 (3): ... establish a risk function separate from its investment management function and fund administration function, ...
Par 27 (3): ... disclose to the investor quarterly, within 30 days ... the exposure limit or value-at-risk ...
Par 29 (1): ... furnish to the registrar ... a report containing ... the exposure or value-at-risk limits ...
References to the requirement for independent risk and valuation services are found throughout the entire text of BN52. In particular,
PART 4: GENERAL PROVISIONS APPLICABLE TO ALL HEDGE FUNDS
mentions the requirement for the establishment, maintenance and application of risk and valuation policies, of risk management and risk measurement procedures, of daily-, monthly- and quarterly reporting requirements to managers, investors and the registrar, all with the emphasis on independence.
Par 24: Risk management, risk management policy and risk manager goes into more detail regarding the establishment and enforcement of a risk management policy that must take into account operational risk, business risk, liquidity risk, credit counter party risk and market risk, and mentions specific techniques such as stress testing, back testing and scenario analysis as well as market risk measures such as exposure and value-at-risk.
With its experience as risk and valuation service provider for the hedge- and long only market, covering all asset classes, as well as its state of the art on-line portfolio warehousing and maintenance technology, RiskCafé is in an excellent position to be appointed as independent service provider by hedge fund managers, fund administrators, management companies (MANCOS) and other role players looking to comply with the new regulations.
Our technology and years of experience in our team of financial mathematics professionals, allow RiskCafé to offer a consolidated solution across asset classes, markets, exchanges and prime brokers. With a flexible product offering that ranges from a fully serviced portfolio reconciliation function with NAV-, PnL- and risk output, to a simple position based daily value-at-risk or valuation output, RiskCafé is able to offer an efficient and effective solution to all role players in the industry - and ready to make your operation BN52 compliant!
RiskCafé Webmaster & Editor
The core competency and background of our team is financial- and general applied mathematics as well as computer programming skills.
RiskCafé develops all its technology for specific service delivery in-house, into one single on-line delivery platform.
Efficiency is a first consideration for every activity at RiskCafé. Our system and process layout allows our clients to perform multiple tasks from a single control point.
For medium to large operations, RiskCafé offers a traditional software license and support agreement with a scalable on-site deployment.
Clients with specific operational capacity submits prepared input data to our customisable cloud platform, and receives output data according to a pre-defined format.
RiskCafé collects and maintains input data, conducts a reconciliation to the source and performs all administration to deliver final output in the form of data files or reports.
Cape Town based Matrix Fund Managers have recently joined the long list of hedge- and long only fund managers making use of RiskCafé's valuation and risk serviced solution and are now in a position to view detailed and consolidated risk and return data on demand.
With a relatively small team, Matrix manages more than 10 separate (high volume) fund structures covering interest rate-, commodity-, equity- and derivative asset classes. Their portfolio data resides at a number of different sources across markets and brokers. Some input data sources have well defined structures, but in some cases trade and position data arrives in e-mails and PDF documents.
The RiskCafé technology platform made automation of data flow into the calculation unit simple - even in the case of e-mail delivered input which would otherwise require manual intervention. With data integration and daily cash flow reconciliation largely automated, the team at RiskCafé - and at Matrix - is now able to focus on output quality and developing new risk and valuation material.
A highly specified and sophisticated output layout allows Matrix to ingrate results back into in-house warehousing infrastructure, without the need for additional filtering and scrubbing processes. Large volumes of daily risk numbers - including exposure, value-at-risk, delta and nett asset value - are delivered daily, per fund, per strategy, per product type and in most cases per manager.
Using the on-line system developed by RiskCafé, the team at Matrix is also able to perform certain ad-hoc tasks directly from their desktops, providing them with the ability to correct input errors, reproduce output for specific valuation dates, book trades or run test scenarios for the purse of proactive compliance.
By continuously developing new ideas and suggestions from clients, RiskCafé is able to re-invest a collective effort back into a consolidated technology framework - a feature that is key to the way we think at RiskCafé.
RiskCafé Webmaster & Editor
Rudolph started his financial markets career as quantitative analyst in 1998 at Decimax in Johannesburg where he became responsible for market-, credit-, capital-, collateral- and cash flow risk management.
Later on Rudolph also spent time as trader of interest rate derivatives as well as derivatives sales in the corporate market. He has been steering portfolio restructuring exercises aiming to mitigate risk and execute controlled exit strategies.
Rudolph is a founder member and director of financial services company Frontier Capital Instruments (RiskCafé) and holds B.Sc. (Geophysics) and M.Sc. (Mathematics) degrees from the University of Pretoria.
Janus Vermaak completed a Bachelor in Science degree with a major in Financial Mathematics at the University of Johannesburg in 2008. He is currently studying towards the actuarial professional exams through the Actuarial Profession, and has completed CT 1 (Financial Mathematics) and CT 3 (Probability and Mathematical Statistics).
Prior to starting at RiskCafé in 2011, Janus worked as a freelance consultant doing mathematical and statistical analysis for various individuals and institutions. He is currently active as a junior financial mathematics programmer and portfolio administrator at RiskCafé.
Janus has won numerous academic awards and is a member of the Golden Key International Honour Society.
Pieter van Zyl completed BMus (Hons) in Music Technology in 1999 at the University of Pretoria, with Mathematics as extra subject. After that, he has been a music teacher for six years at Afrikaans Hoër Seunskool in Pretoria, where he gave flute and saxophone lessons, as well as arranging and composing various pieces of music.
In 2008 he made a career change and became a SAP HR consultant, involved in Time and Leave Management, at EPI-USE Africa. He joined RiskCafé in September 2009, where he is involved in software development and information technology management.
Pieter’s unique point of view and diverse skills base allows him to present creative solutions to challenges in today's business environment.
Gus Louw joined the RiskCafe team in October 2015, bringing with him 19 years of experience as a fixed income portfolio manager in both the long only and hedge fund space.
Gus graduated with a BSc in Applied Mathematics and a BSc (Hons) in Mathematics. He started his career at Gensec Bank and subsequently joined Investec as a senior equities derivative trader, before joining the asset management industry.
Betina Machuvukele completed her Bcom Hons (Investment Management) at the University of Johannesburg in 2015. She is currently studying towards her Masters in Finance and hopes to complete her studies end of 2019 after which she will enroll as a CFA level 1 candidate.
Betina joined RiskCafé as a Fund administrator in 2015 after completing her degree. She is in charge of managing of client data and the interactions between prime brokers and relevant fund administrators
Grace Magwaza completed her Bcom Hons (Investment Management) at the University of Johannesburg in 2015. She has been with the company since 2016. She plans to register for her level 1 FRM exam, where she will enhance her skills of risk analysis in hedge funds.
Grace serves on mid-level management where she assumes the responsibilities of managing client - and prime broker data by performing reconciliation and inspection of compliance in fund reports. She is also selected to train junior fund administrators for RiskCafé.
De Wet Cronjé completed his BCom Hons (Financial Risk Management) at the University of Stellenbosch in 2016. Currently he is aiming to complete his GARP FRM by writing level 2 in November 2019.
De Wet started at RiskCafe in 2016 as fund administrator. At the moment he is fulfilling the role of product developer handling special request from clients as well as implementing investment mandates and setting up new funds. Furthermore, De Wet handles day to day queries from clients regarding the reporting output.
Are you passionate about financial mathematics, technology, a committed and enthusiastic worker? RiskCafé is looking to fill the following exciting positions:
RiskCafé is seeking the services of a junior programmer interested in programming for the financial markets industry, specifically for the purpose of developing pricing, risk management, administration and warehousing functionality.
Potential candidates must have a B.Sc Hons. or higher in mathematics, science or computer science, must be fluent in C and / or C++, and must have web development experience (HTML5 and CSS).
RiskCafé is seeking the services of a junior fund portfolio administrator interested in a career in the funds management industry, specifically for the purpose of collecting and reconciling trade-, position- and cash flow client data as well as managing output data.
Potential candidates must have a B.Com. or higher in accounting or investment management (or similar), must be fluent in Excel, and have a good accounting background.
RiskCafé is an equal opportunity employer.
For more information, please contact us:
Tel: +27 (0)11 782 9197
Fax: +27 (0)11 782 6916
RiskCafé (Pty) Limited
Greenacres Office Park
Cnr Victory & Rustenburg Road
Victory Park, 2195
P.O Box 81097
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