Success Story: Allianz Global Investors in Europe

Introduction of calculo for the calculation of product- and distribution data

Allianz Global Investors in Europe

For our customer Allianz Global Investors (AGI), we developed and implemented Scores, a rules-based sales controlling solution that is now deployed globally at Allianz Global Investors. The platform calculates data on invested assets as well as net cash flows for products and their geographical distribution. 

Success Story

Company

Allianz Global Investors manages over € 498 billion in assets under management for institutional and private investors worldwide. Asset Management experts at Allianz Global Investors have operations globally in more than 25 offices particularly in Europe, the US and Asia. With more than 650 investment professionals, the investment management team covers all major financial and growth markets around the world.

Interviewee

Felix Müller, Head of Management Reporting at Allianz Global Investors GmbH talks about the introduction of 'Scores' for the calculation of product- and distribution data.

Details

  • Challenge

    AllianzGI sales controlling relied on a variety of systems and data sources to produce sales and management information reports. Manual data retrieval and data processing were at the expense of work efficiency and significantly increased the potential for errors and workload.

    For this reason, our customer was looking for a solution that automatically obtains and integrates relevant data. In addition to the implementation of supraregional and regional calculation methods, special emphasis was placed on the scalability of the platform from a European to a worldwide level.

  • Goal
    • Centralised, global sales controlling to calculate assets under management and net cash flows
    • Obtain relevant data from different data sources while ensuring high data quality
    • A business-rules-based software solution that consolidates global processes and systems (including automated import & validation of master and transaction data, automatic calculation of sales metrics)
    • Use of global calculation methods with simultaneous consideration of regional deviation
    • Ensuring end-to-end traceability by historicizing calculation results, user interactions and changes
  • Solution

    With the central sales controlling platform ‘Scores’, master data from Golden Sources can be processed while transaction data from different global and regional sources can be obtained at the same time. The flexible, rule-based calculation methods determine and aggregate the assets under management as well as net cash flows. In addition, unallocated assets are calculated as well.

    Subsequently, this data is prepared, consolidated, aggre­gated and analysed at the product and sales level for the reporting of various internal organisational units and functional areas (sales and product management, regional and global financial management).

    The calculated data is used further in the downstream process as a basis for the calculation of inventory commissions and for run rate revenues.

What can ‘Scores’ do?

  • Daily calculation of estimated assets and net cash flow (1,2 million positions, duration 1-2 hours)
  • Complete calculation including validation of 100 million items (weekly calculation of key figures from the beginning of the year to the current date, duration 2-5 hours)
  • Calculation of unallocated assets (20-40 minutes)
  • Ad hoc calculation of requested customers and accounts (inventory and net cash flow at the account and customer level, fund-in-funds investments, distribution and reinvestment)

«Scores» in numbers

  • 40,000 customers 
  • 70,000 accounts 
  • 7,000 products
  • 1,2 million positions per day
  • 70,000 transactions per day
  • 100 million positions p.a.

Felix Müller, Head of Management Reporting at Allianz Global Investors GmbH, talks about the introduction of ‘Scores’ for the calculation of product and sales data.

How does the solution prove its worth in global use at Allianz Global Investors?

The main objective of the project was to improve the quality and timeliness of the reports of global and regional sales controlling. ‘Scores’ forms the “Golden Source” for key figures of global sales controlling, such as for Managed Assets (AuM), Net Cash Flow (NCF) and is also used as the basis for calculating expected returns (RRR). Thanks to ‘Scores’, the calculation and evaluation processes could be harmonised worldwide and the scalability of the system made it possible for us to bring all regions to one platform.

 

What were the challenges within the project?

Firstly, different data sources had to be connected and validated worldwide in order to guarantee the required data quality. Then calculations had to be optimised and controlled so that all regions could work with the most up-to-date data according to their time zones. And finally, the steadily growing amount of data from all regions had to be transferred into one system, with nevertheless convincing performance.

 

How do you handle the problem of time zones and different source systems?

On the one hand, we standardised the data sources, while the scalability of ‘Scores’ allowed for region-specific configurations at the same time. Both the data import and the calculations are done automatically at the regional and global level, so that the data is always available on a timely basis for all regions. ‘Scores’ prepares the data at both the product and distribution level.

 

What advantages does the system offer today for AllianzGI and its customers?

We now have a harmonised, global process that can deliver consistent calculation results and high-quality, up-to-date reports. The quality through data control and quick availability of the sales figures is ensured by ‘Scores’ 

 

Can the benefits be quantified?

It’s hard to quantify the efficiency gain, but in the past we worked with more people to prepare the European sales results, today it’s the global ones with fewer employees. ‘Scores’ contributed significantly to this.

 

Felix Müller

Head of Management Reporting at Allianz Global Investors 


“‘Scores‘ makes the sales controlling team a trusted sales and financial management advisor in steering the business.”

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