Reducing Costs and IT Developmentby Using an Open XML Data Formatfor Exchanging Fund Data

Peter RaffelsbergerIT ArchitectPioneer Investments Austria

Dr. Carsten LüdersDirectorBVI Bundesverband Investment und Asset Management e.V.

TSAM FundsXML | March 2014 | Page 2

Content of this presentation

Extended list of requirements

Situation before introduction of FundsXML

Situation after introduction of FundsXML

Usage of FundsXML in Austria

Usage of FundsXML in Germany

History and organisation of FundsXML

TSAM FundsXML | March 2014 | Page 3

Extended list of requirements

We want to reduce shadow

accounting

I need a detailled break-down for

external subfunds

We have to meet new legal reporting

requirements

We need risk figures and detailled data of

embedded derivatives

We need transactions and subs/reds on a

daily basis How to ensure data quality for duzens

of external data sources ?

Can we support complex fund-of-fund

or master-feeder constructions ?

Can we deliver fund data in a standardized

format ?

TSAM FundsXML | March 2014 | Page 4

Situation before introduction of FundsXML

Hundreds of different interfaces in production

High costs for development and maintainance of interfaces

Time consuming data quality process

High error rate caused by different date and number formats

Difficult handling of optional fields

Problems with different interpretation of specific fields

No automated data format check possible

TSAM FundsXML | March 2014 | Page 5

Situation after introduction of FundsXML

Dramatic reduction of interfaces in production

Much lower costs for development and maintainance

Simple and efficient data quality process

No more errors caused by different date and number formats

Very easy handling of optional fields

Clear usage of fields as documented in xml schema

Automated data format check

TSAM FundsXML | March 2014 | Page 6

Usage of FundsXML in Austria

Data of all Austrian funds avaliable in FundsXML format

(NAV data, holdings, transactions, subs/reds, security data)

Usage of FundsXML format for legal reporting to OeNB

Web Fund Data Portal of OeKB:

- Single place for exchange of fund data

- Advanced access control

- Downloading and uploading of data can be fully automated

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USAGE OF FUNDSXML IN GERMANY (I)

Delivery of all asset and investment management information to BVI

The managing directors of investment and asset management companies of BVI members, decided in 2008 to use the standard FundsXML for the data delivery to BVI. BVI collects data to produce different kinds of market statistics.

The data delivery via FundsXML includes:

■ All kinds of static fund information (for example identifier, date of issuance and liquidation, fund classification, for institutional funds kind of investor)

■ Flow figures like gross and net sales as well as assets under management and assets under administration of more than 11,000 funds

■ Portfolio composition and other detailled information of real estate funds, which represent more than 10 per cent of the German retail investment fund market

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USAGE OF FUNDSXML IN GERMANY (II)

Delivery of all asset management and investment management information to BVI

■ Company data with regard to the different services provided (like assets managed and assets under custody)

■ TER and performance fees

■ Price and dividend information necessary for performance calculation

■ Data about pension provision programs

The data collecting does include not only the information of companies issuing products in Germany, but also of foreign companies offering products to the German market.

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USAGE OF FUNDSXML IN GERMANY (III)

Distribution of Data

Investment companies use FundsXML for the distributon data to

- Data vendors

- Distribution partners

- Externally hosted websites via content interface

The Data mainly consists of

- Daily prices- Full holdings - Basic fund data- Reporting data

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USAGE OF FUNDSXML IN GERMANY

Plans

■ Data collection of AIFMD products, which are not part the existing data collection (like closed ended funds, private equity)

■ Supporting legal reporting requirements by enabling the standardized exchange of data between market participants (like portfolio structure of funds of funds)

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From a national solution to a European standard

■ 2001: Leading German investment companies start the initiative:■ Allianz Global Investment, COMINVEST (now Allianz Global Investment), CREDIT SUISSE

ASSET MANAGEMENT, DEKA, DWS, UNION INVESTMENT

Supported by:

■ Vontobel und K&W Software AG aus der Schweiz■ The asset management company and data provider FERI TRUST

■ 2003: BVI, the German investment and asset management association, supports FundsXML as

data delivery standard

FUNDSXML HISTORY (I)

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The next members

■ 2006 VÖIG, the Austrian Investment Management Association, the

Österreichische Kontrollbank (OeKB) and the Erste Sparinvest

■ 2007 Robeco

■ 2008 DIAMS (jetzt FundsXML France)

The Danish Investment Association IFR (represented by the data provider

FundConnect)

■ 2009 La Banque Postale Asset Management, Paris

■ 2010 AFG, the French investment management association

FINESTI (now Fundsquare), Luxemburg

■ 2011 KNEIP, Luxemburg

■ 2012 AXA France Investment Managers

FUNDSXML HISTORY (II)

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EFAMA supports the use of FundsXML

■ May 2013EFAMA recommends the use of FundsXML as the standard for the

delivery of Fund Processing Passport (FPP) information

FUNDSXML HISTORY (III)

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Protection of FundsXML

■ Since 2010 the name FundsXML is protected for 10 years by a copyright on EU-level

■ The copyright was applied by FundsXML France in the name of the FundsXML Standards

Committee

FUNDSXML AS A BRAND

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■ The FundsXML Charta defines a minimum of structure and procedures

■ The FundsXML Standards Committee (FSC) is the highest decision-making body, especially

responsible for essential changes of the FundsXML schema

■ FSC also decides about the appointment of working groups for special subjects to advance and

promote FundsXML

■ FundsXML Working Group Content/Technique ■ Subworking Group Data Dictionary■ FundsXML Working Group Promotion

FUNDSXML ORGANISATION

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The latest version 3.0.7 can be used for:

■ Reporting obligations concerning Basel II

■ Shadow accounting

■ An extended data base for sales purposes

■ Reports to data providers like Thompson Reuters, Bloomberg, Morningstar, FundConnect,

Fundsquare

■ Fund Processing Passport

■ Key Investor Information Document

■ The data delivery to the central banks in Germany and Austria

■ Data delivery for all BVI statistics

■ Reporting for the Austrian Web Fund Data Portal of OeKB

FUNDSXML CURRENT SITUATION

BVIBundesverband Investmentund Asset Management e.V.

BVI BerlinUnter den Linden 4210117 Berlin

BVI BrüsselRue du Commerce 20 – 22 1000 Bruxelles

BVI FrankfurtBockenheimer Anlage 1560322 Frankfurt am Main

VIELEN DANKFÜR IHRE AUFMERKSAMKEIT

Dr. Carsten LüdersDirector

Fon +49 69 15 40 90 224

Carsten.Lueders@bvi.de

www.bvi.de

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IT-Architect

Fon +43 1 33173 4314

Peter.Raffelsberger@pioneerinvestments.com

www.pioneerinvestments.com

Peter Raffelsberger