Pourquoi une gestion de portefeuille efficace doit se fonder sur une approche intégrée?

Transcription

1 Pourquoi une gestion de portefeuille efficace doit se fonder sur une approche intégrée? Jan Maree Frei-Cox Swiss Life Bernard Fripiat SimCorp François Pichon SimCorp

2 Agenda Présentation de SimCorp Le projet K2 de SwissLife: exemple d intégration front to back Questions/réponses

3 Acteur mondial dédié au secteur de la gestion d actifs SimCorp Norge AS SimCorp Sverige AB SimCorp Canada Inc. SimCorp USA Inc. SimCorp A/S SimCorp Ltd. Solutionforge Limited SimCorp Benelux SA/NV SimCorp GmbH SimCorp Ukraine LLC SimCorp Österreich GmbH SimCorp Asia Pty. Ltd. Hong Kong SimCorp Asia Pty. Ltd. Singapore Etablie en 1971 au Danemark, coté sur Nasdaq OMX (Copenhague) depuis 2000 SimCorp France S.A.S. SimCorp Schweiz AG SimCorp Asia Pty. Ltd employés Financièrement très stable: En 2010, chiffre d affaire de 185 million Un positionnement simple : Offre logiciel unique : SimCorp Dimension Le progiciel le plus complet et le plus étendu pour l industrie de la gestion d actifs sur le buy side Des références prestigieuses dans nos quatre domaines d intervention : gestion d actifs, assurance et prévoyance, gestion de fonds et fonds de pension 3

4 AGEFI Techday France 2011 May 2011 Jan Frei-Cox

5 Agenda 1. Swiss Life 2. Challenges for Swiss Life Investment Management 3. Project Goals & schedule 4. Benefits 5. Questions K2 Programme - A Successful Climb 5

6 Swiss Life introduction Leading life insurance and pension solution provider Business Activities: Switzerland (27% market share) France Germany International Business AWD employees Assets under Management: CHF 125 bn K2 Programme - A Successful Climb 6

7 Investment portfolio Insurance portfolio for own risk : CHF 112 billions (fair value basis as per ) Equities & equity funds Alternative investments Real estate Mortgages Loans 4.8% 12.6% 4.7% 9.0% Switzerland 69% Governments & Supranationals 32.6% France 16% Corporates 66.6% 33.7% Germany Others 1) 0.3% 15% Cash and other 2.3% K2 Programme - A Successful Climb 7

9 Business Challenges Why is the management of insurance assets so challenging? Guaranteed Return: In Switzerland, the guaranteed return on insurance assets is 2%. Current return on Government bonds 10 year) is 1.5% The selection of investments (risk budget) is strictly regulated by the Swiss authorities (FINMA) Switzerland will introduce the Swiss solvency test as of (similar to solvency II). For the international units, the introduction of Solvency II is planned Accounting (Statutory and IFRS) targets and economic targets can conflict with each other K2 Programme - A Successful Climb 9

10 Economic versus Accounting Economic perspective: fluctuating with markets Accounting perspective: smoothed, but... complicated rule set FX Risk Economic substance and solvency Important for published results Timely, accurate data, in particular accounting and risk data, is of vital importance to run our business K2 Programme - A Successful Climb 10

11 Business Challenges why front-to-back? The effective management of assets must consider all views and constraints: Economic performance against benchmarks Daily accounting views for local GAAPs and IFRS The effect of market changes against Solvency constraints A front to back system provides the type of information for both management and for asset managers to more effectively manage their assets. They are able to: Monitor the effect of individual trades for all key views Simulate market changes (also on an accounting level) Implement / monitor strategies to optimise views e.g. P&L Take fast, corrective action for market changes K2 Programme - A Successful Climb 11

13 Why a new architecture? In 2006 we found that the current application architecture was no longer able to support our growing demands A situation review (primarily in Switzerland) concluded the infrastructure was behind market standards due to: no straight through processing (SWIFT) missing functionality leading to many manual processes and high operational risk difficulties to provide timely and consistent data very expensive to maintain the environment and to implement regulatory changes After a short pre-study, it was decided that IM would implement a complete new application architecture The programme K2 was initiated to select and implement the new architecture K2 Programme - A Successful Climb 13

14 Goals of K2 Align processes and architecture to the IM business strategy so that returns can be optimised Increase overall data quality and provide consistent investment information on market and book values Ensure delivery of all required risk data for IM Provide better functional coverage Long-term reduction of manual operation & controlling activities Reduction of operational risks Higher flexibility and lower costs in integrating business changes Scalable solution which can also support multiple mandates (option to integrate other organisations) More flexibility for compliance with regulatory and internal standards K2 Programme - A Successful Climb 14

15 Evaluation Overview Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Initiation phase Set-up phase Approach IM strategic framework Target business processes Business requirements Architecture scenarios Internat. requirements Request for information Business architecture Request for proposal & Clarification workshops Proof of solution Selection No. of vendors / applications No. of solutions K2 Programme - A Successful Climb 15

16 Application landscape 2006 (CH) K2 Programme - A Successful Climb 16

17 Application landscape 2011 (CH) K2 Programme - A Successful Climb 17

18 Solution Comparison Business Perspective Coverage Business 100% 80% Business Coverage (higher better) 60% Vendor 40% 20% 0% V II Business Architecture Accounting 100% Note: Ratings based on business requirements and signed off by IM Bus. Treasury 80% Compliance & Controlling 60% IT 40% Settlement Monitoring 20% Data Management & Support 0% C Risk Management V II Hedge Accounting Preparation Performance Measurement Manage Client Assets SimCorp business coverage is significantly higher for all 9 IM business areas POMS II SimCorp V C Current solution SAP K2 Programme - A Successful Climb 18

19 Functional Area Manage Client Assets SimCorp Dimension supports our front office requirements effectively: The Portfolio Workbench (new Asset Manager) provides the Asset Managers with the ability to effectively manage and monitor their portfolios considering all constraints Interfaces to key market players is done via SWIFT (brokers, custodians, fund administrators and trading tools) For the rollout to France, additional functionality is required including: Real time trading functionality with interfaces to trading tools and the monitoring of execution Pre-trade compliance checks, rebalancing, and strategy management Real time market data The ability to add modules and functionality, as required, makes SimCorp Dimension the ideal tool to support different requirements K2 Programme - A Successful Climb 19

20 Global Evaluation Switzerland Release 1 SimCorp Core Switzerland Release 2 SimCorp Advanced K2 Rollout Overview Evaluation Release 1 SCD CH Today Release 2 SCD CH Definition of target processes and requirements Request for proposal and definition and selection of final landscape SimCorp Dimension basis installation with minimal coverage of front to back business processes Decommissioning of obsolete systems Additional functionality in SimCorp Dimension for risk, collateral mgmt, trade flow, compliance, etc. Switzerland Release 3 Data Warehouse Germany SimCorp France SimCorp SCD SimCorp Dimension DWH Data WareHouse CH Switzerland GE Germany Evalua tion Release 3 DWH CH/GE SCD Germany Evaluati on SCD France Rollout of Data WareHouse for Switzerland and Germany Decommissioning of further satellite systems Definition of German specific functionality Implementation of the first multi entity components Definition of French specific functionality Implementation of the first multi entity components K2 Programme - A Successful Climb 20

21 Success factors (1/3) 1. Scope Extensive pre-study and selection process with strong business involvement / ownership from all units Detailed analysis, documentation and formal approval of business requirements for all units before starting the rollout Clear milestones with tangible and measurable deliverables which have been reviewed/signed-off by business Stay with standard SimCorp processes and functionality. Define multi entity approach from the beginning We selected the right system! Few functional changes No major delays, early business ownership Plan the final solution at the start 2. Resources Selection and integration of strong external partners with clear selection criteria Build up of good mix between internals with business know-how and externals with system and conceptual expertise No compromises strict assessment and replacement of weak internal and external resources Strong partnerships with common objectives Optimal solution design and implementation Ensure high skill level K2 Programme - A Successful Climb 21

22 Success factors (2/3) 3. Quality Strong risk management process with periodic formal reviews at all levels (team -> project -> programme) Two external programme reviews with assessment and feedback on status and recommendations for improvements Extensive six month testing phase with more than test cases Risk always under control and mitigated Second opinion for STC & programme management No major issues after go-live 4. Cooperation Strong and early involvement/integration of key persons from all countries, including Investment Management and other organisations such as Group Accounting, IT, Group Risk and other teams Top-down enforcement of open project culture in respect to suggestions, improvements and issue escalation Integrated solution, few conflicts and delays Optimal solutions, proactive organisation K2 Programme - A Successful Climb 22

24 Benefits Accurate and timely key figures: Accurate and timely accounting information via a daily accounting closing (soft close) with a daily Investment Income report per country and consolidated view Single methodology for the pricing and valuation of all instruments across all units Single source of asset data for group risk activities Significantly reduced reconciliation activities caused by inconsistent figures Interactive user tool within the DWH which allows user to analyse data or produce their own reports Reduction of costs: Less costs for settlement activities due to reduction of bank and custody accounts and STP processing Higher flexibility and lower costs in integrating future functional changes Single infrastructure leading to reduced maintenance costs K2 Programme - A Successful Climb 24

25 Benefits Optimised returns: Access to new exchanges such as the Repo Market in Switzerland allowing cheaper liquidity Centralisation of treasury functions in Switzerland leading to better management of liquidity Better overall management of the assets and risks allowing optimisation of return on assets Operational risks Reduced manual operation and controlling activities leading to lower operational risks Better and more flexible functional coverage (simplified processes) K2 Programme - A Successful Climb 25

26 Questions K2 Programme - A Successful Climb 26

27 Questions? Pour plus d informations sur SimCorp et ses solutions, rendez-vous sur le stand 10