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GoldenSource is powering Aware Super’s live Whole-of-Fund View With $160bn+ AUM and a bold ambition to scale past $250bn, Aware Super uses GoldenSource to bring its investment data, across public and private markets, together into one powerful view. If you'd like to see the power behind the Aware Super's 'Project Odin' please get in touch. #InvestmentDataManagement #WholeofFundView #LiveNotLogo https://lnkd.in/d2UawZYG

From Heat to Black Scholes In 1789 Joseph Fourier accompanied Napoleon as scientific advisor on an expedition to Egypt. When Fourier came back, he developed the heat equation (A) in the diagram below. An early application of the heat eqn was a model for (B) describing heat flow from a ground surface through soil depth. In the model, dT/dt captures how temperature T changes in the soil as time t passes. dT/dz models the direction of heat flow, where z is depth. And the curvature term tells us how fast that flow changes as it goes deeper into the soil. The temperature change from day-to-day at different soil depths is shown in diagram E. Close to the surface, the heat from the sun causes high variations in temperature from noon to noon. The light blue 5cm sine wave captures the variation. As we go deeper into the soil (20cm & 40cm), the daily sine waves flatten out via a process called exponential decay. Fourier’s key observation in deriving the heat eqn was that it could be represented as sum of these sine waves. In fact, he believed that any function could be represented as a sum of sine or cosine waves. The method became known as Fourier series. It revolutionized the way motion and change were analyzed. The heat eqn models how temperature T changes as both time t and depth z change. In the late 1960s Black, Scholes and Merton were trying to develop a?model that captures how an option value V changes as both time t and the option’s underlying stock price S change. However, unlike the smooth continuous variables z and t in the heat eqn, one of the variables, S, that BS & M were dealing with was random. Solutions to differential eqns were not possible if the variables were random or jagged. They solved this problem by assuming that the random nature of the stock price S could be diversified away by assuming that the option price V was perfectly correlated with the stock price S if the right amount of stock was held. This amount is calculated as dV/dS, aka the stock’s delta. They combined this assumption with an, at the time, new branch of mathematics called Ito calculus to convert the eqn for the random stock price movement, dS, into eqn E below, the BSM eqn for the non-random option price movement, dV. The similarities btw the BSM eqn and Fourier’s heat eqn are shown with the vertical parallel lines btw eqns E and A. In the heat eqn, the curvature term and its coefficient control us how fast heat flow changes as it goes deeper into the ground. In the BSM eqn, on the other hand, the curvature term controls how fast the option price changes as the stock price and its delta change. The BSM eqn, like all differential eqns is an eqn of movement. One of its solutions is the formula(G) for the price of a call option at a particular point time for a given stock price, S. To arrive at this formula, BS & M first converted the BSM eqn back into the heat eqn. They then used techniques for solving the heat eqn to derive the call option formula.

How to onboard credit ratings There are the ‘Big Three’, S&P, Moody’s and Fitch. (Together with Morningstar DBRS, they are sometimes listed as the ‘Big Four’.) Each has their own delivery mechanisms. Additionally, numerous regional credit rating agencies worldwide, including Germany, Italy, France, Canada, Korea and Japan, provide ratings specialized in – but not only for – their domestic companies. And many other data vendors (including the large usual suspects) act as redistributors for those rating providers. Hardly anyone relies on one single credit rating agency alone – typically it is a combination of providers. (With ‘credit ratings’ we don’t just mean the usual long-term and short-term ratings, but also probability assessments, whether/how the company’s ratings may change, the Credit Watch and Rating Outlook.) The majority of GoldenSource clients use all of the Big Three. Several are adding at least one regional data provider, such as DBRS in the Canadian market. The question is typically whether to onboard those ratings directly from the agency itself, or via (one of) your security master or entity master providers instead. Accessing the data directly from the agency means getting the complete rating data from the horse’s mouth and as soon as possible. Redistributors have processing times and cut-off times themselves which may add some lag, particularly when dealing with newly rated instruments or issuers. A redistribution may also focus on the most commonly required rating data points, as opposed to the full depth of the rating services. For Issuer ratings, a decisive criterion is the entity ID scheme(s) your issuer master is based on. When leveraging direct agency rating feeds, some form of entity matching always needs to be implemented. Redistributors on the other hand typically align the rating agencies’ proprietary Issuer IDs to their own entity ID scheme automatically, sometimes paired with other value-add such as a composite rating. Irrespective of the actual data license with the respective rating agency, such extra services may come at an additional fee. There is no single best way. Either one may be more suitable for your data ecosystem. Our strong recommendation, however, is to take all these aspects into account, before deciding on the route that is most suitable for enriching your Security Master and/or Entity Master with comprehensive high-quality ratings.

“Data is our biggest challenge.” That’s what Aware Super’s Michael Clavin shared during a recent panel with GoldenSource at AM Tech Day, and it’s something we hear time and time again. We’ve been working closely with the Aware Super team to help bring structure, transparency and agility to their investment data. We're proud to play a role in their journey, and even prouder to see the impact it’s having. Got similar data challenges? Let’s talk #awaresuper #goldensource #investmentdatamanagement

"To reap the rewards of private assets, you need the right foundations." In his latest piece for WatersTechnology.com, GoldenSource CEO James Corrigan unpacks why the proposed U.S. Sovereign Wealth Fund shines a spotlight on a critical challenge: managing data across public and private markets. With mega funds eyeing private equity, infrastructure, and alternatives, success depends on scalable platforms built for real-time transparency and control. Read the full article below if you're a WatersTechnology Subscriber, and if you're tackling similar challenges, we'd love to hear from you. #PrivateMarkets #SovereignWealthFund #InvestmentOperations

Another momentum-building week wrapped up for the GoldenSource team at InvestOps North America. The team spent three days connecting with industry leaders, clients, and partners along with showcasing our Snowflake OMNI solution at a series of oversubscribed roundtables. We had a fantastic response, but if we didn't get the chance to connect, we'd still love to hear from you. Feel free to reach out directly here on LinkedIn or via [email protected] to arrange a conversation. James Corrigan | Sarfaraz Makani | Eric Hamilton | Jeremy Katzeff, CFA #GoldenSource #InvestOps

A busy week for the GoldenSource team in Australia as they attended the inaugural AM TECH DAY APAC, exploring the future of investment operations in superannuation funds and demoing our native Snowflake OMNI app. We also had the pleasure of connecting with valued partners and clients during an exclusive Asset Owner dinner. Great discussions, insights, and relationships strengthened—thanks to everyone who joined us. GoldenSource | Snowflake | Alpha FMC | Aware Super Amit Kumar Choudhary | Dhruv Almaula | Angelo Calleja | Rinesh Patel | Michael Clavin

The first edition of The Golden Standard, GoldenSource’s new monthly newsletter, is now live on LinkedIn - practical content from our in-house experts Jeremy Katzeff, CFA, Volker Lainer and Charlie Browne, covering everything from AI in quant finance to regulatory data governance and data onboarding best practices. If you're a COO, CTO, data leader or just navigating the growing complexity of investment operations this one’s for you. #TheGoldenThread #DataGovernance #GoldenSource

Less than a month until the 2025 edition of InvestOps in Orlando, Florida! Our team will be on-site over the three days, including the innovation day on the 10th, ready to demonstrate the next wave of GoldenSource buy-side solutions. Jeremy Katzeff, CFA Eric Hamilton Sarfaraz Makani #InvestOps25 #BuySide #InvestmentDataManagement

Less than a month until the 2025 edition of InvestOps in Orlando, Florida! Our team will be on-site over the three days, including the innovation day on the 10th, ready to demonstrate the next wave of GoldenSource buy-side solutions. Jeremy Katzeff, CFA Eric Hamilton Sarfaraz Makani #InvestOps25 #BuySide #InvestmentDataManagement