Aquin - Reference Story - Clariden - ViewPoint Capital Partners

AQUIN COMPONENTS GMBH
Rock Solid Banking.
Aquin's middle office solutions DVS and
MIG21 help us to fulfil our maxim of
achieving the best possible performance
for our investment customers on a daily
basis. DVS is our core engine for businessrelated
data. It ensures that data is centrally
organized in a standardized format,
with a verified quality. It is an indispensable
basis for providing service-oriented facilities
for our internal customers.
Thanks to the flexibility available with
DVS, the services centre sector has grown
insignificantly, despite a two-fold increase
in the number of products and a corresponding
increase in product complexity.'
Successful investments
with a data hub
Enhanced efficiency and data quality for fund management
Clariden is the seventh-largest provider in Switzerland of funds approved for public
distribution. Between 1990 and the end of 2004, the bank's managed assets increased
from 4.6 billion to around 37.6 billion Swiss Francs. Whereas the levels of managed
assets at Swiss private banks have generally stagnated over the past few years,
Clariden has recorded a constant increase in cash inflows.
Daniel Kornmann, member of the Clariden Bank extended board of management
The steady introduction of innovative finance products has contributed to this continual
growth. The key to Clariden's investment success is an active and flexible asset allocation
with regard to world-wide investments in shares, bonds, currencies and alternative
investment areas. Acting on the basis of its own independent financial analyses,
Clariden invests where its convictions are strongest and based on above-average fundamental
data and attractive valuations.

Consistency with a strategic data hub
In its search for a new strategic business segment, Clariden decided in 1995 to enter the Swiss fund management
market, a complex and stringently regulated niche within the finance world. Supervisory authorities such as the
Swiss Federal Banking Commission (EBK) monitor segregated holdings, management and sale of assets in line with
respective national regulations, as well as assuring that the asset allocations published in the fund prospectus are
adhered to.
Christoph Widmer, Head of IT of the Clariden Financial Products division, on the regulated model:
'During the first few years, we conducted our fund business using the existing
IT infrastructure. The required data from the fund accounting departments was
not available in an electronically processable form, but was supplied as
preadsheets. These then had to be prepared by various departments for the
production of our publications. Spreadsheets were continually being
generated, dispatched and processed further for different purposes. This resulted
in a confusing entanglement and the loss of information and data history.'
The rapid growth in the funds business, continual expansion
of the product range, together with the addition
of products subject to different legal provisions to the
business field, represented an ever-greater challenge for
Clariden, particularly as far as generating publications
and evaluations for operational business was concerned.
'It was almost impossible to trace information back to
its origin, and a new process had to be started for each
new evaluation. For this reason, we wanted to create a
Key function: 'Load procedure verification'
Until the introduction of DVS, the collation of data
(for example for drawing up fund fact sheets) used to
be a complicated manual process. Reports from the
individual fund accounting departments were only
sent to selective recipients and just offered information
relevant to their standpoint, in some cases in
unstructured Excel format. The data could be neither
efficiently processed, nor could it be maintained centrally.
As data was processed manually, the number of
error sources increased correspondingly with the rise
in business volume. This resulted in unsystematic
errors, which were exceedingly difficult to pinpoint.
'After reaching critical proportions, we realized that
we required technical system support with process
automation if we wanted to expand the funds business
any further,' explains Christoph Widmer. Various standard
products were tested during the evaluation.
Three aspects were of decisive importance to Clariden:
Christoph Widmer, Senior Vice President, Clariden Financial Products
centralized solution. If we are able to maintain our
data correctly at one location, and as long as this data
is consistent, every funds manager can generate his
own evaluations as required without creating havoc.
This is because data is always taken from the same
source. To minimize internal friction loss, we therefore
looked for a strategic data hub, and found our ideal
solution in DVS from AQUIN Components GmbH', is the
reason given by Christoph Widmer for the decision
made in the fall of 2000 to purchase the system.
The solution had to cover business requirements and
enable automation of the standard processes; it had
to have an architecture that could be easily integrated
in the existing system environment at Clariden to
keep costs as low as possible; and the new platform
would need to be highly scalable to allow it to master
future challenges.
Christoph Widmer's argument is that 'DVS was able
to meet all our requirements. What finally influenced
our decision was the key function in the software for
automatically verifying data while it is being loaded
into our DVS data warehouse from external data
sources and fund accounting departments. This
enables us to fulfil our business obligation to supply
data of the highest possible quality. It is a crucial
function which we did not find in any of the rival
products!'

Standardization reduces complexity
The data in the DVS data warehouse originates from various sources such as fund accounting departments or backoffice
systems (e.g. Avaloq) using different data models. During the daily automated loading of data from supplier
systems into DVS, it is both checked and standardized.
'We transform the logic of the accounting systems by standardizing the data to as great an extent as possible from
the end user's point of view. This reduces the complexity, and the user does not have to worry about working with
different accounting systems or data sources.
There is one data source, with just one data format.
This allows our data to be combined and evaluated
exactly as required,' says Christoph Widmer, explaining
the advantages of the data consolidation in DVS.
During the verification process, the securities holdings
are recalculated based on the transactions. In
the event of a discrepancy, the person responsible is
notified by e-mail or SMS.
Christoph Widmer on the warning function: 'The early
detection of errors means that not only can we ensure
that the data is correct, but we can also prevent
what may be serious follow-on costs resulting from
false information.' As data is checked consistently
using the same logic, any process changes instigated
by the supplier are immediately recognized in the
evaluation.
'We have a true partnership with AQUIN. Not only was the project realized on
schedule as planned, but it was also completed within the quoted budget.
AQUIN's staff demonstrated outstanding specialist expertise and exceptional
analytical skills, and they were also extremely keen to implement the project
efficiently. AQUIN's experience played a major role in integrating the system
smoothly into our complex IT environment.'
Right decisions are based on
correct and rapidly available data
When it comes down to it competition in the funds
sector, as in every business field, revolves around
winning new customers. Overproportional growth can
only be achieved if Clariden succeeds in persuading
other fund consultants, the respective providers or
even competitors to choose its products.
Christoph Widmer formulates business demands as follows:
'On the one hand, we have to support our sales advisors
in this competitive environment with the necessary data
and information. And this in time, as tomorrow's financial
world looks completely different! And on the other
hand, we have to provide our fund managers with correct
product management information so that they can
make the right investment decisions!'
The funds business is extensively governed and is supervised
by EBK, the Swiss banking commission. In extreme
cases, wrong decisions made in product management
on the basis of incorrect data could result in the
cancellation of a full day's business with a consequent
resettlement. In addition to a possible loss of image,
costs are obviously incurred as well.
With DVS, we are able to guarantee consistent data
organization and data of the highest possible quality.
And we can deliver the correct data quickly and for any
purpose required!
This is why, for Clariden, DVS represents the central
source of data for conducting its fund business.

Process acceleration by a factor of 30
Thanks to centralized, checked and daily updated data,
any number of analyses from different points of view
can be generated quickly and flexibly. Initial extra time
and costs resulting from new requirements are replaced
by standard processes.
'DVS allows the time spent on recurring activities to be
reduced to a minimum proportion of the daily work
time. This means that we can concentrate on the really
important tasks,' adds Christoph Widmer.
A large number of reports frequently required by fund
managers are generated at the click of a button. The
extremely complex management reports (MIS) were
completely standardized with DVS. This has other significant
advantages. Everybody has the same information
at their disposal, and they can rely on high-quality
information for their day-to-day business requirements.
The production process for publications has also been
standardized to a very large extent. Christoph Widmer
explains how processes have been accelerated.
'Previously, we frequently had to gather together data
from different sources and convert it into a uniform
data format when we compiled our publications. Just
preparing a draft version used to take several days.
The rational data organization in DVS means that,
from a technical point of view, creating a fact sheet
today only takes a few minutes. The preparation of
data with DVS has enabled us to accelerate this process
by a factor of between 20 and 30!'
Reports can now be generated daily; without DVS,
this would be extremely cost and time-consuming.
Even the investor's wish to view the individual items
in his portfolio can be efficiently fulfilled using the
'LookThrough' tool. DVS originally served solely as a
source of data for fact sheets. Clariden quickly recognized
the greater potential offered by DVS, and today
uses innumerable analysis options without incurring
any additional costs.
Complex SNB statistics in 20 minutes
Historical data storage with DVS allows the efficient
locating of required data, and therefore fast reaction
to requests for statistics made by authorities such as
the Swiss National Bank (SNB). The reports that have
to be submitted have become significantly more complex,
so that drafting them manually would no longer
have been economically viable for Clariden. As
Christoph Widmer says, 'these new reports for the SNB
mean that we have to deploy a more sophisticated
technology. DVS helps us to meet these demands in an
efficient manner. The pure preparation of the data
only takes a few minutes, and the entire reporting
process is ready after just one hour! Although the statistics
we had to provide previously were considerably
less detailed, without DVS collating the figures alone
would have taken days.
'DVS is a core system at Clariden and was therefore selected in line with our best-of-breed strategy.
Without DVS, we would no longer be able to practise our business in the customary manner. Our requirements
regarding system availability are obviously extremely demanding for this very reason. Although analysis and
quality requirements have risen continually, and in the process have become increasingly more complex, we can
rely on DVS! With DVS, the business-controlled expansion of the data inventory, such as is required for EU
interest rate provisions or risk information, takes place efficiently and without any ancillary costs.
Christoph Widmer, Senior Vice-President, Clariden Financial Products
Even the integration of the new process in DVS took less
than one week!' Of equal importance to Clariden is the
capability for creating 'on-the-fly' reports. As the application
is so easy to operate, the end user is able to
compile customized analyses within a few minutes, or a
couple of hours at the most. Christoph Widmer, describing
this data autonomy in the sense of 'self-empowerment',
says that 'before we introduced DVS, dynamic adhoc
analysess would have been unthinkable as the data
was not available in a structured form.'
Today, Clariden can track all its day-to-day business
in detail, and is therefore also in a position to perform
situation-related cause research, for instance
with detailed analyses of how funds are performing
against set benchmarks.
'With the static spreadsheet figures of the past, we would
have had absolutely no chance of offering our internal
customers this service. DVS provides us with the entire
history covering every single transaction, which means
that we are able to make in-depth analyses and investigate
causes even more thoroughly,' says Christoph
Widmer, commenting on this new-found flexibility.

Operational and liability risk management
In the compliance sector, Clariden relies on MIG21. Both internal guidelines and the liabilities defined in the
product documentation are monitored. Full deployment throughout Clariden's product business processes is
imminent. Christoph Widmer describes the new security aspect offered by MIG21. 'We have completely automated
our 'ex-post' verification process and can perform daily checks. The only limitations we face are lacking investment
master data.' If a portfolio should change due to unforeseen events on the stock market, MIG21 notifies
the portfolio manager accordingly. In his absence, the deputy regulation takes effect.
'This means that we are able to react quickly and
take all the actions necessary to rectify the portfolio.
MIG21 gives us, and our investors, the secure
knowledge that we always abide by the defined
guidelines! This control mechanism is a benefit
for us, as we are not 'flying blind', says Christoph
Widmer, describing the new process quality acquired
with MIG21.
Key Company Data
Clariden
Swiss private bank. Subsidiary of the Credit Suisse
Group. Seventh-largest provider of funds approved in
Switzerland for public distribution.
Branch
Private banking
Finance products
Facts & Figures
Head office: Zurich
Managed assets 2004: CHF 37.582 billion
Fund trading 2004: CHF 9.171 billion
No. of funds 2004: >40
No. of employees 2004: 640
Challenge
Efficient economic control of the greatest possible fund
volume
Solution
DVS Fund Information System
MIG21 Investment Compliance
Benefits
Maximum employee transparency and self-empowerment
by means of a centralized, rational and verified
data source in a standardized data format.
Competitive Advantages
Economic production of analysis and publication
data, as well as rapid reaction to changing market
and reporting needs.
AQUIN Key Data/Utilization at
Clariden
DVS users: ~50
MIG21 users: ~15
Data volume: 55 GB
Data sources: Avaloq, Access DB, Bloomberg, EFA
Net, Datastream, 4Series, etc

Fund Accounting
Guernsey (4Series)
Luxembourg (EFA net)
Switzerland (Access DB)
Reporting
Portfolio Management System
Management Reports
ad hoc Queries
AQUIN Components GmbH
Germany (Head Office)
Mainzer Landstrasse 199
60326 Frankfurt am Main
Germany
Tel. +49 (69) 21 93 66 600
Fax +49 (69) 21 93 66 650
AQUIN Components GmbH
Ireland
48 Sydney Avenue
Blackrock
Co. Dublin
Ireland
Tel. +353 85 722 69 69
AQUIN (Schweiz) GmbH
Switzerland
Binzstrasse 18
8045 Zürich
Switzerland
Tel. +41 (44) 455 62 44
Fax +41 (44) 455 62 49
DVS Utilization at Clariden
AQUIN Components GmbH
Luxembourg
26, Boulevard Royal
2449 Luxembourg
Luxembourg
Tel. +352 (22) 99 99 55 70
Fax +352 (22) 99 99 54 99
Securities Master Data
Datastream/Bloomberg
GAIN Data Desktop
DVS
Verified Data Quality
Process Acceleration
Fund Look-Through
Collated Benchmarks
Custodian Bank Reconciliation
AQUIN (France) S.A.R.L
France
1, Rue Clotilde
92130 Issy les Moulineaux
France
Tel. +33 (1) 46 44 22 30
Fax +33 (1) 46 44 26 37
AQUIN Components GmbH
USA
One Stamford Plaza
263 Tresser Boulevard, 9th Floor
Stamford, CT 06901
USA
Tel. +1 800 946 4421
Custodian Bank/Custody Avaloq
Data Benchmark
Various Systems
MIG21
Investment Compliance
Publications
Internet/Intranet
AQUIN Components GmbH
Great Britain
288 Bishopsgate
London EC2M 4QP
England
Tel. +44 (207) 266 14 32
Fax +44 (207) 959 30 30