Dresdner Bank Luxembourg opts for PFS

Competitive edge through trend-setting technologies for investment compliance monitoring and portfolio reconciliation

The fund administrator and custodian bank Dresdner Bank Luxembourg S.A. (DBL), a subsidiary of Dresdner Bank AG, is Allianz Group's centre of competence in Luxembourg. The key to success for DBL is the optimal support they provide for their fund management company and their innovative product policy which is geared to investor requirements. While the proportion of securities is declining in the fund portfolios, the importance of derivative products is continuously gaining ground.

This strong trend towards more complex products, which is expected to continue, turned into an increasingly complex challenge for DBL. In-house solutions used for daily checks and reconciliations reached the limits of their performance ability due to the lack of flexibility in terms of new products.

Automated Investment Compliance Monitoring with MIG21

MIG21 was introduced at the same time as the EU Directive UCITS III came into effect under Luxembourg Law. Deemed binding after the transitional phase in February 2007, this law means increased demands in investment restriction monitoring for market participants. "With our in-house solution, the UCITS conversion definitely would not have been feasible", recalls Peter Schmitt. "The deciding factors for MIG21 were the high level of adaptability along with its predominant market position in Germany. Furthermore MIG21 was already used by Allianz Global Investors KAG (formerly dit), the asset management specialist of the Allianz Group. Thus, we were quickly able to realize the performance abilities of the solution which was already implemented within our group."

Stream-Lined Processes Through Data Standardization

Since July 2003, MIG21 has proved to be indispensable to DBL in the daily checking of legal and fund-specific investment restrictions. "Thanks to the efficient and extensive automated work processes, the management company is obtaining ex-post check results the same day", reports Norbert Kohn. "Furthermore, MIG21 steadily improves the quality of our investment compliance monitoring to a level which satisfies the demands of our SAS 70 certification. We are able to offer clients and auditors the highest level of transparency possible and, for example, track exactly when which rule type applied. Consequently, our settlement needs with clients are declining dramatically."

Gerhard Peulen, Head of Fund Business Development: "As a company, and specifically the respective departments that utilize DEBAS and MIG21 the most, we have been highly satisfied with both PFS products. In both implementations, PFS staff demonstrated the level of competence needed to carry out IT projects in a complex environment and provided quality work whilst at the same time preserving schedules and budgets. We would especially like to emphasize that this high level of suport continues after implementation - we feel very well looked after in the routine maintenance service. This certainly cannot be taken for granted.

In short: Working with PFS is simply fun."

"By optimizing our system landscape we support our vision to be a quality provider in the fund business sector."
	Norbert Kohn (right) in conversation with Benedikt Buhl, CEO DBL

Greater Efficiency with DEBAS

Key Facts Dresdner Bank Luxembourg S.A. A subsidiary of Dresdner Bank AG, Dresdner Bank Luxembourg is part of the Allianz Group. A total value of around 22 billion Euros in 80 funds are presently under administration. Homepage: www.dresdner-bank.lu Corporate head office: Luxembourg, other subsidiaries in Monaco and Gouda and a branch in Madeira Parent company: Dresdner Bank AG, Frankfurt Employees: approximately 360 Sectors: Fund administration and custodian banking Challenges Struggling to manage internally developed fund controlling and reconciliation as well as investment monitoring systems High level of manual input required Existing systems too rigid compared to speed of innovation Solutions PFS DEBAS (data reconciliation between fund administration and custodian bank) and MIG21 (investment compliance monitoring)

Advantages Very short project duration - PFS supported the complete implementation of DEBAS in only 45 project days Rapid adjustment to new products with DEBAS and MIG21; changes can be configured without vendor support Critical processes such as NAV checking are carried out more quickly and with a sustained higher level of quality Same-day ex-post investment compliance monitoring with MIG21 Homogenous implementation of requirements for portfolio reconciliation SAS 70 certifications achieved due to higher level of transparency Flexibility facilitates adjustment to current market trends and innovation level Efficient range of services possible Interface between MultiFonds and MIG21 / DEBAS very similar in design Solution scalability remains guaranteed Quick learning curve for employees

DBL's Project Team

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