Consulting Paradise

The life of a hardcore consultant can be a hassle...

Blog Facts I-2008

I think it is about time for another blog note, which I will post regularly now. They will be called "Blog Facts", and I will produce them a couple of times per year.

I also have sliced the blog description on top to make more room for the first post, especially for those with a smaller display size. Therefore, I have moved the contents in the log note (at the end of this post).

Quite a few people have asked me how much time I spend to keep this blog alive. Actually, and for many this has been surprising, it is just 15 minutes a day in average. The initial time to set up all the lists on the rights panel has been a couple of weeks with 2-3 hours daily.

Some people are irritated because of the bi-lingual nature of this blog. For all native anglo-saxons, all German posts are not understandable because they tend not to speak a second language. For Germans, they can use the translation widget on the right panel to translate the English posts (and it really works like a charme...) into German. For all others (who do speak neither English nor German), they may only use the translation widget to translate the English posts into their own language.

But why have I created a bi-lingual blog ? Well, since I am German and am writing about the German market and/or markets that have Germans working there (e.g. this is the case in Dublin) and/or German products are in use there or are relevant for the German market, I think there is a demand for a German blog. Then again, the vast majority of articles in the industry is written in English, so that when I quote an English article I will always write the post in English. Please let me know your thoughts on this.

Take care and enjoy reading!

Regards, Ron

------------------- contents from the former blog description:
However, the posts are either in English or German and not translated. To view the blog in any other language please use the translation widget placed on the right panel.

Are you missing a system in one of the categories on the right panel ? Do you wish to write articles here yourself ? Just let me know. And comments are welcome by anyone, anytime! You can call me at my cost (using my Jajah account) if you want to know more...

To read this blog on your mobile, use Mippin.

ARAG counts on asset management software from SimCorp

Yet another client for SimCorp in Germany: the ARAG Group (a major German insurance company) has signed recently. This deal covers the complete front-to-back functionality SimCorp offers. Accounting will be done according to HGB and IFRS.

With such a freqency of new clients in Germany, I wonder if there is enough resources with SimCorp knowhow available, both at SimCorp and/or in the market in general.

Rules-Engine erleichtert das Reporting der Fondsbilanzierung

Über dieses erfolgreich abgeschlossene Projekt zum Regel-basierten IFRS-Reporting der Fondsbuchhaltung der Deka hat Dr. Rebentisch bereits auf der IT-Fondsprocessing 2007 berichtet.

Dabei wird das Eclipse-basierte Entwicklungssystem ILOG JRules Rule Studio eingesetzt.

Spannend wird nun sein, wie dieses System in die neue Systemlandschaft um SimCorp Dimension eingepasst wird, das ja auch über eine IFRS-Reporting-Funktionalität verfügt.

TA Roundtable Discussion: "TA revolution takes hold"

This Luxembourg based roundtable discussion on the future of transfer agency took place in January 2008 and was held as a follow-up to a previous study that included fund promoters, distributors and service providers in 11 European countries.

As this blog tries to focus more on the IT system side of the business, I would like to point out 3 conclusions that were drawn:

• "Despite the fact that the overwhelming majority of those interviewed expect that there will be a great deal more automation in the next three years nearly three quarters of those surveyed do not believe that there will be much more consolidation in this business over this time period."
• "Everyone agrees that the European TA business is operationally inefficient in that it is not capable of handling increasingly complex fund structures coming onto the market today in any volume. The issue is what can be done about it. Faxes are still the most common method settling fund transactions with STP rates well under 50%."
• "There is a widespread view that there will be convergence of in the long only and alternative fund industries and that this will have significant consequences for the TA process in the future. In particular the industry is increasingly looking for generalist TA systems that combine the features required to do long only and alternative funds. Systems capable of dealing with share equalisation are now a must, said many interviewees."
  

Postbank Luxembourg implements SimCorp Dimension’s Fund Accounting in seven months

Deutsche Postbank International (PBI) has successfully been going to production with the fund accounting module within, what Simcorp says, 7 months.

Although PBI being a rather small investment banking institution, Simcorp stresses the fact that short running projects are possible with its system - contrary to what some people in the market seemed to have been noting.

I wonder if this has any impact on the system that will finally be selected and implemented at the German Postbank Private Investment (PPI).

TIQ Solutions stellt TIQView für systematische Datenqualitätsanalyse vor

Die TIQ Solutions um Ralf Becher stellt auf der Cebit ihr Werkzeug zur Analyse der Datenqualität vor, mit dem auch die Fachabteilungen Messungen beispielsweise ihrer Data-Warehouse oder Data-Marts vornehmen können.

TIQ Solutions weißt insbesondere auf die bestehenden Anstrengungen für eine gute Datenqualität hin, u.a. getrieben auch durch "externe Anforderungen an Unternehmen wie Basel II oder dem Sarbanes-Oxley Act sowie in Umsatz- und Imageverlusten, die auf mangelnde Datenqualität zurückzuführen sind".

Swiss Life Funds AG optimiert Datenmanagement und Reporting mit DVS von Aquin

Aquin hat mit dem Produktionsgang ihres Data-Warehouses DVS beim schweizer Dienstleister Swiss Life eine (wie Aquin sagt) schnelle Umsetzung erreicht: 10 Monate dauerte es, bis die einzelnen Systeme (u.a. IGEFI MultiFonds und Allocare AMS) angebunden werden konnten.

Dabei hat die Swiss Life Wert insbesondere auf ein mehrsprachiges Reporting gelegt.

Standard Chartered Bank goes live on IGEFI’s MultiFonds Fund Accounting platform

As already indicated in a rumour post a while ago - now it's official: Another Asian based client (besides HSBC) has not only signed but has gone live with MultiFonds: Standard Chatered Bank..

IGEFI has its Asian head quarter and development department in Bangalore, India, which is run by Madame Van Ta, IGEFI's founder.

I believe that a great deal of future growth for IGEFI will come from Asia.

Neuer Kunde für DIAMOS-F

Die Diamos AG hat einen weiteren Kunden für Ihre Fondsbuchhaltungs-Software Diamos-F, diesmal in Liechtenstein.

Nach der HANSAINVEST und der Berliner Volksbank ist dies der 3. Kunde für Diamos-F.

European Bank for Fund Services (ebase) setzt das Financial Messaging System X-Gen von Swissrisk ein

eBase, der Dienstleister für Depotkontenverwaltung hat mit Hilfe von Acarda und vor allem dem Werkzeug X-Gen das Bankhaus Metzler per SWIFT angebunden.

Ein schöner Erfolg für das noch junge Unternehmen Acarda.

Netik acquires Capco Reference Data Services with private equity investment from Symphony Technology Group

This deal is a little surprising to me, since CapCo has actively marketed the reference data system in Germany, and I wonder if its marketing will be continued since Netik is relatively unknown in Germany. See also here.

BGI Deutschland verliert Vorstandschef Kirchhoff und Stellvertreter Weisbrich

Interessante Personalie: Die BGI verliert die ETF-Gründer Kirchhoff und Weisbrich (siehe Portfolio Institutionell - bitte einloggen). Über den Grund kann man nur spekulieren...

Moderater Rückgang des CFS-Finanzplatzindexes trotz Kreditkrise

Die aktuelle Auswertung des CFS-Finanzplatzindexes (die Erwartungshaltung des Managements von Finanzinstituten in Deutschland hinsichtlich der Markt- und Standortentwicklung) liegt vor, und erneut gab es einen - diesmal überraschend moderaten - Rückgang.

Darin heißt es u.a.: Der CFS-Finanzplatzindex hat seit Jahresanfang 2007 einen Gesamtrückgang um 9,3 Punkte zu verzeichnen, ist aber immer noch im positiven Bereich. Die Unternehmen des Finanzstandortes Deutschland sehen sich selbst somit nicht in einer Krise. „Die Auswirkungen der Kredit-Krise werden durchaus gesehen, aber Ihre Konsequenzen für das Stimmungsbild bleiben weiterhin gering“, erklärt CFS-Direktor Professor Dr. Jan Pieter Krahnen.

Interessant fand ich auch die Erwartung, dass "nur knapp 15% der Befragten erwarten, dass mit den Bilanzpressekonferenzen (für die Jahresabschlüsse 2007) das volle Ausmaß der finanziellen Belastungen (der Kreditkrise) bekannt wird." Mit anderen Worten: in 2008 wird erst der größte Teil des Schadens bekannt werden...

West LB Mellon Asset Management entscheidet sich für SunGard Asset Arena

Da ist er also, der erste GP3-Kunde in Deutschland (über den man auch berichten darf). Den hat sich Sungard sich auch hart verdient, schließlich gab es lange einen anderen Favoriten für den Abschluß.

Eingesetzt wird auch das Modul Post-Trade-Compliance, und das an den Standarten Düsseldorf und London der WestLB Mellon Asset Management.

Trends und Topthemen der Bankbranche 2008

Diese vom BankingClub gestartete Umfrage zeigt vor allem eins: dass die deutschen Banken fest daran glauben, dass in diesem Jahr zumindest der Arbeitsmarkt sich noch nicht entspannen wird. Wenn die Entwicklung an den Finanzmärkten so weiter geht (selbst wenn die Eskalation der letzten beiden Tage außer Acht gelassen wird), dann sollte sich das aber eigentlich schneller auf den Arbeitsmarkt auswirken. Wenn das nicht so sein sollte, dann liegt es m.E. hauptsächlich daran, dass auf derartige Entwicklungen (leider?) erst in der jeweils nächsten Jahresplanung eingegangen wird.

Nicht überraschend dagegen sind die Einschätzungen für IT-Projekte - hier gibt der Gesetzgeber (zur Freude der Berater und IT-Unternehmen) immer wieder neue Aufgaben auf. Gestern war MiFID, heute ist die Abgeltungssteuer...

Standard Chartered Bank chooses IGEFI MultiFonds ?

According to the latest rumors, Standard Chartered Bank has chosen IGEFI "MultiFonds Fund Accounting" as their new fund accounting solution. This decision seems to be valid for all subsidiaries around the world.

If this will be confirmed, it would prove that IGEFI's strategy of making deals preferably with global players.

The Challenge of OTC Derivatives for (Luxembourg) Fund Service Providers

Derivatives are increasingly used to improve the performance in the fund industry. With the convergence of traditional and alternative investments, this trend is getting even stronger. Additionally, the local Luxembourg new SIF legislation (heavy PDF article in HedgeWeek) is further opening the door for more derivatives investment.

Aside from listed derivatives (options / futures), the ability to deliver services around OTC derivatives have emerged as a differentiating factor for Fund Service Providers always eager to attract new clients or more funds from their clients.

A growing part of the Fund Service Providers offer a range of services around OTC derivatives in Luxembourg, from handling custody and fund accounting to collateral management or independent valuation. There is room for more, despite a few hurdles to overcome.

Those hurdles are familiar challenges for the Luxembourg Funds Industry: People and Systems. Finding the profiles with, at the same time, OTC derivatives skills and in-depth knowledge of the Fund industry is even more challenging due to the product complexity which has nothing common with traditional instruments. They require systems able to capture trades, handle reconciliations, allow reporting per strategy or specific functionalities such as pricing.

From a technology point of view, the emergence of FpML as a standard for OTC derivatives should improve STP handling among Fund Administrations. Coming for the Asset Management Industry, those new systems and standards will have a significant impact on the existing IT infrastructures of Fund Service Providers. A new gap to bridge between the Fund Administrators and Asset Managers capabilities…

The growth of OTC derivatives has also driven the development of emerging services such as risk monitoring and advanced support to build structured product or trade execution services.

Luxembourg fund service providers shall keep a close eye on this market which from now on.

Yoann Jagoury, CapFields

Mitsubishi UFJ Asset Management selects SimCorp Dimension

Another sales success for SimCorp: Mitsubishi UFJ Asset Management has chosen SimCorp Dimension for its middle and back-office tasks.

If you look at their home page the job offers directly reflect the closed deals they have made lately in Germany and the UK...

Universal schnappt sich von SEB Großauftrag für Fondsadministration

Nun ist es raus und öffentlich bestätigt: Die SEB Asset Management lagert die Administration seiner Wertpapierfonds an die Universal-Investment aus.

Die erwähnten Skaleneffekte erhofft die Universal auch über die Flexibilität der IT-Lösung zu erreichen - die Fondsbuchhaltung-Software Xentis von ProfiData.

Das soll nicht der letzte Coup der Universal gewesen sein. Übrigens, ein Kollege von mir hat dabei in einer zentralen Rolle unterstützt dürfen...

HELABA chooses Simcorp Dimension

Now this is interesting: the mother of Helaba Invest, which is running ProfiData, chooses Simcorp Dimension for post-trade processing, custody operations and depository banking.

HELABA is the first "Landesbank" that chooses Simcorp Dimension. It would be interesting to see if others will follow this decision - rumors say that LRP is one step shy of a decision...

IT Spending in Financial Services: A Global Perspective Report Published by Celent

As BobsGuide, BankTech and Waters (amongst many others) report: Celent has released its survey on what financial institutions will spend for their IT.

The report does cover Northern America, Europe and Asia, but sources prediminantly cite the US only.

Union Investment-Vorstandschef Rüdiger Ginsberg im Gespräch: „Alle werden genauer hinschauen“

Interessantes Interview zum Standpunkt der Union Investment u.a. beim Thema Abgeltungssteuer.

DekaBank chooses SimCorp Dimension

Finally, DekaBank has signed with Simcorp. The negotiations have been going on for months and first rumours about a possible stop popped up.

DekaBank plans to replace Sungard V3.Fonds with Simcorps Fund Accounting and compliance module.

This probably was the biggest deal that was left to do in Germany for a longer time. The biggest KAGs (German investment banking institution) are now "taken": DWS/DeAM and Allianz Global Investors use Simcorp, Union uses IGEFI MultiFonds, Universal and ComInvest use ProfiData Xentis. For fund accounting / back-office in KAGs, that is.

Compliance Awards 2008 - Candidates for the "Best Technology Solution"

The nominees are out for the Compliance Awards 2008 - here are the candidates:

• Aquin (MIG21)
• Orchestria (Bo Manning)
• Tonbeller AG (Paul Hamilton)
• Verifile Limited (Eyal Ben-Cohen)

I just wonder who created that list...