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Case Studies - Deutsche Asset Management
Deutsche Asset Management switch to Performa
Background
Deutsche Asset Management (DeAM) UK represents the fourth largest investment management house in the UK. Their parent company, DeAM Group, is the world's fourth largest investment manager. As at 30 September 2003, DeAM Group was entrusted with approximately US$700 billion of assets under management. Comprising over 120 portfolio managers responsible for investments in equities, bonds and property, DeAM UK has attracted a wide range of clients across the entire risk/return spectrum - including institutional pension funds, charities, private clients, insurance companies and retail clients.
In February of 2004, Performa were chosen as the preferred composite system provider to provide the support for DeAM UK's GIPS compliance status. As such, there were high expectations from both parties for a smooth and rapid transition process from the legacy system to PerformaGlobal.
Transition Process
As DeAM UK had already achieved GIPS compliance using an existing system, it was crucial to ensure that the transition process remained seamless and that data integrity was maintained. The project was broken into two phases; migration from the legacy system and implementation of PerformaGlobal. The seven-week project plan was aggressive, but achievable.
When changing from one system to another, there are inevitably discrepancies between how data is handled as a result of the differences in the way the two systems operate. During the transition process, Performa and DeAM UK worked closely together to resolve these data discrepancies. Throughout both phases, Performa supported DeAM UK by offering hands-on assistance to ensure that any issues encountered were addressed in a timely manner.
The expert business knowledge and technical expertise from both parties not only addressed data requirements, but ensured that on-going data maintenance is managed effectively in PerformaGlobal.
Milestones
The success of this system implementation project is down to teamwork and a thorough understanding of the project plan, key roles and key stages involved. DeAM UK ensured a well-defined project plan was established from the outset with key milestones highlighted for each project phase - this timetable drove the entire project. With Performa's experience on other projects of a similar nature, Performa was able to assist not only in the compilation of the contents and timescales of the plan but, more importantly, with the identification of potential pitfalls and associated risks.
The weekly project committee meetings helped to consistently monitor progress and steer the project in the right direction. This forum also proved effective in promoting continuous support for the overall objective. As Performa was represented at each weekly meeting, this helped to build confidence between supplier and client and, as a result, a strong and effective working relationship between DeAM UK and Performa ensued.
Conclusion
Having achieved GIPS compliance using their legacy system, DeAM UK had justifiably high demands for a smooth transition process to PerformaGlobal. The successful outcome of this system implementation project may have even surpassed expectations - and this could not have been achieved without the teamwork and expertise of both parties.
At that time, Peter Ellis, Managing Director - Performance and Client Services, had the following to say about the project:
"Changing systems can prove to be a complex, lengthy and costly process. The decision is never taken lightly as there are many factors involved. This has been one of the most successful projects I have been involved with at Deutsche Asset Management and clearly demonstrates that the switch to Performa is straightforward. We look forward to a long and mutually beneficial relationship with the Performa team".