At a Glance
• Second-largest independent company of manager and administrator of investment in Brazil
• 288 active funds will be managed and 364 funds will be administrated with Temenos Multifonds
• Robust, efficient, flexible platform will fuel expansion into other countries and market sectors more efficiently and in a tailored way
With BRL 118 billion (USD 24.3 billion) funds under administration and BRL 103 billion (USD 21.2 billion) under management, REAG Investimentos is the second-largest independent fund administrator and managers in Brazil. Having recently celebrated its tenth anniversary, this fast-growing company offers fiduciary services and related financial services primarily to high-net-worth individuals and families.
For REAG, the customer is at the centre of everything. Aiming to provide the convenience of a one-stop-shop for financial services, the company is expanding its range of products and services – for example, moving into credit markets and setting up an insurance arm, as well as acquiring other asset management companies. The company is simultaneously broadening its customer base by introducing investment services tailored to less wealthy individuals.
Leonardo Carvalho, CFO, CRO and Investor Relation Director at REAG Investmentos, says: “The Brazilian market for financial services is highly competitive, so we need to keep evolving and improving. As an independent company, we take pride in offering better service and tailored solutions for investors.”
Ricardo Andreotti, Innovation Manager at REAG Investmentos, adds: “The major banks offer a standard range of investment products. By contrast, we tailor our offerings to each customer’s precise preferences and goals. In acquiring other businesses, our goal is to be able to offer our customers all the financial services they need. In the future, we may also achieve this through open finance, by seamlessly connecting our customers to white-label services managed by other providers.”
With a further goal of expansion into markets beyond Brazil, REAG understood that its existing investment-operations infrastructure could no longer meet its ambitious development and growth objectives.
Choosing a renowned solution
Given the company’s rapid growth and international ambitions, REAG wanted a globally recognized fund-administration solution capable of supporting operations in multiple countries. After assessing available solutions, REAG selected Temenos Multifonds – a platform trusted by 9 of the world’s top 15 fund managers.
João Carlos Mansur, CEO at REAG Investmentos, says: “A key reason for choosing Temenos Multifonds was the ability to deliver services more efficiently so that we could improve the experiences of our clients and employees. Temenos Multifonds will undoubtedly allow us to expand to international customers in the future. We also noted Temenos Multifonds is many fund managers worldwide, meaning we now have access to the same expertise and technology as these global leaders.”
“We chose Temenos Multifonds deployed on a SaaS model as the solution best able to support our growth and diversification objectives, and because Temenos is fully committed to adapting the solution to the complexities of the Brazilian market.”Leonardo Carvalho, CFO, CRO and Investor Relation Director at REAG Investmentos
REAG is deploying Temenos Multifonds to manage the full cycle of fund administration, including accounting, regulatory reporting, IR and IOF tax reporting, and investor services. With easy access to real-time information, improved analysis of fund processing, and improved data quality, REAG expects to simplify and streamline its operational processes, for efficiency gains of up to 30 percent.
Adapting to complex local requirements
An important factor in the selection process was adaptability to the challenging regulatory environment in the Brazilian market, as Ricardo Andreotti explains: “The market for financial services in Brazil is very heavily regulated. For example, we must submit 38 mandatory regulatory reports each year. Temenos stepped up to the challenge of localizing the platform to meet our requirements in Brazil.”
For several years, Temenos has been investing in the localization of Multifonds to the Brazilian market. Adaptations include new functionality to support the local funds under the new CMV 175 regulation and valuation methods for local financial instruments such as Brazilian fixed income. Temenos has also adopted a complete set of regulatory reports for CVM, ANBIMA and Bacen, and integrated full coverage of local IR and IOF taxes.
“Throughout the implementation process, Temenos has provided great support and proved extremely flexible in adapting the solution to our needs in Brazil. As a result, we are very confident that we will achieve the desired outcomes together.”Ricardo Andreotti, Innovation Manager at REAG Investmentos
Leonardo Carvalho adds: “Temenos is a very important partner to us, and will provide the essential support we need to keep growing our core business.”
Accelerating information delivery
As REAG rolls out Temenos Multifonds, it expects to streamline business processes and deliver accurate information faster to employees and customers. The company plans to display operational dashboards on more than 50 big screens in its offices so that everyone can see important information at a glance. Equally, it will provide real-time information through customer-facing mobile apps.
Ricardo Andreotti says: “Today, we are constantly receiving requests for information from customers. By automating the delivery of information, we will not only give customers what they want but also free up internal personnel to focus on other tasks, increasing our overall efficiency.”
Staying two steps ahead of the market
As REAG plans for its next major strategic shift – the expansion into other geographies, including via a partner company in the United States – its new Temenos solution is ready to support the delivery of services across multiple jurisdictions.
“Our CEO always likes to be two steps ahead of the market,” says Ricardo Andreotti. “Operationally, we need to be prepared to move very quickly in a new direction. Temenos Multifonds gives us the ability to work with multiple currencies across multiple time zones and within multiple regulatory environments: the system is ready to ‘plug and play’ in any other country. This gives us great confidence that we are ready for whatever challenges the future may bring.”
Temenos Multifonds also provides extensive capabilities around the integration of third-party products and platforms through APIs. REAG has already started its journey to open finance, and expects to extend its offer to customers both by developing its own services and by integrating with external partners.
“Temenos Multifonds is a complete solution for REAG. With real-time information, automated and fully integrated across the whole company, everyone can see what’s going on. And since Temenos is really flexible and innovative, the solution will integrate with other internal and external systems so that we can achieve new synergies.”Leonardo Carvalho, CFO, CRO and Investor Relation Director at REAG Investmentos