Success Story: IDS GmbH

Automated calculation of the performance fee charges

IDS GmbH – Analysis and Reporting Services

IDS GmbH offers investment companies a managed service for the calculation of performance-based fees. For the automated fee calculations, IDS has employed the powerful and flexible calculo software. In 2011, IDS extended its client base to include custodian banks. With the calculation and controlling service clients save money while still being fully compliant with all the regulatory requirements.

Success Story

Company

IDS GmbH – Analysis and Reporting Services (IDS), a subsidiary of Allianz SE, is an internationally operating provider of operational investment controlling services for institutional investors and asset managers. IDS offers a wide range of premium solutions for performance and risk analysis, investment compliance and consolidated reports and manages the related business processes.

Interviewee

Stefan Zinn, Product Manager, Head of Retail Fund Reporting Services, IDS GmbH - Analysis and Reporting Services, Frankfurt am Main, November 2011.

Details

  • Background

    IDS GmbH is expanding its client portfolio. With the increasing number of new customers, the number of retail funds is also growing. This has an effect on the calculation of fees causing scalability problems in the calculation of outperformance fees and administration fees. Spreadsheets are error-prone and cost a lot of time and human resources.

  • Goal

    To implement an auditable and efficient system solution for simple automation performance-based fee calculations.

  • Solution

    calculo is a solution based on "Business Rules Management (BRM)" technology. It supports the service provider in the whole calculation process: from data import through the clearing and release to reporting.

Read an excerpt from the interview with Stefan Zinn, Head of Retail Fund Reporting Services

Mr Zinn, what services does IDS perform for clients?
For investment funds, we calculate performance-based management fees for mutual and special funds on a daily, weekly, monthly or annual basis. In addition, we provide regular reports and as qualified partners, we are able to provide answers to all manner of questions about performance-based management fees.

Questions about performance-based management fees. What methods do you employ and for how many funds do you calculate performance indicators?
We calculate the outperformance fees for over 250 mutual and special funds in Germany, Luxembourg and Ireland. Besides the standard method, we use the high-water mark method and the high-to-high method in various forms according to customer needs.

That must place high demands on the internal business process management (BPM)?
That is right. That is why we have teams with several employees who are all involved in the daily calculations and who are all familiar with the system. Because we always have enough employees on hand for the calculations, we can attain a high level of process security.

Learn more about calculo

Our customers need flexible and powerful solutions in response to the complexity of regulatory challenges and complience requirements. Sowatec’s software solution calculo is modular and meets the sophisticated needs of all our customers.

Learn more about calculo

Our customers need flexible and powerful solutions in response to the complexity of regulatory challenges and complience requirements. Sowatec’s software solution calculo is modular and meets the sophisticated needs of all our customers.

Stefan Zinn Stefan Zinn

Product Manager, Head of Retail Fund Reporting Services

"The time required for settling fees has been massively reduced and all processes are transparent and auditable."

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