DSTi merges systems at Stanlib

DST International (DSTi) has concluded the merging of database-driven back-end and front-end financial systems for Stanlib Asset and Wealth Management, the merged entity stemming from SCMB Asset Management, Liberty Asset Management, Standard Bank Unit Trusts and Liberty Unit Trusts.

Both SCMB and Liberty`s asset management divisions have used DSTi`s HiPortfolio/2 institutional back-office solution for the last decade. SCMB`s asset management division also used DSTi`s HiInvest front-office suite of applications for institutional fund managers for the past two years.

Stanlib, jointly owned by Standard Bank and Liberty, runs two wholly owned subsidiaries: Stanlib Asset Management, focused on managing institutional and retail funds and investment portfolios, and Stanlib Wealth Management, focused on financial product development, product marketing and client support. Funds under administration top the R31 billion mark while funds under management exceed R135 million.

Andr'e du Plessis, CIO at Stanlib, says HiPortfolio/2 is a genuine 24x7 solution that is scalable and flexible and grew with the business, and that both legacy companies were extremely happy with the product. Two years ago SCMB Asset Management realised it would need to broaden its technical capability in the front-office, and after searching for solutions, arrived at a shortlist that included DSTi`s HiInvest. That product now forms the front-end to Stanlib`s solution.

"One of the reasons it was chosen was its ease of integration with HiPortfolio/2, understandably, since both products originate with the same vendor," says Du Plessis. "Ease of integration was a big factor for us to consider because integration issues can turn a medium-risk project into a high-risk one, if you`re not very careful."

At the time, the business sought to enhance its investment decision support information, portfolio modelling and trade order management processes. There was an additional secondary requirement for client reporting. Through implementing the HiInvest solution and achieving the benefits it offered, SCMB`s Asset Management division curbed operational risk to an even greater extent, generated processes electronically and developed audit trails for all transactions and processes, and integrated the front- and back-ends tightly.

"The product did away with human interference which is naturally error prone, and it increased the flexibility of how we manage portfolios, thereby increasing productivity and requiring fewer portfolio managers to perform the same tasks," says Du Plessis. "It has also eliminated micro-processes and we now have straight through processing."

Today the combined solutions, HiInvest at the front-end and HiPortfolio/2 at the back-end, ensure that all instruments in Stanlib`s client portfolios are handled by the system in a uniform process.

The solution required slight customisation in order to cater for all the specific needs of Stanlib and its front- and back-end processes. The merged SCMB and Liberty solutions at Stanlib still allow the business to hook into financial information feeds such as those from Reuters and Bloomberg, and the solution also links directly with various banking systems and custodians for settlements.

"The DSTi software employed in our organisation and the integration and project skills of DSTi personnel accommodated the merging of two large institutions," says Du Plessis. "We believe HiPortfolio/3 will underpin our new business and will set a new standard in the asset management industry. This, with the combination of already implemented and planned HiInvest functionality, will make Stanlib Asset Management the undisputed leader in employment of technology in the South African market and possibly a leader worldwide."

HiPortfolio/3 sees the introduction of a new product stream of HiPortfolio. DSTi has invested well over $20 million dollars into its flagship product to upgrade the technology base of HiPortfolio as well as new features and functions to give the product a whole new product lifecycle.

"Following the successful merging of the systems at Stanlib, the organisation has committed to using HiPortfolio/3 as it is rolled out in stages during the course of the year. We expect that the implementation will be as smooth as the one we have just completed with our technical teams onsite and will add even more value to the users at Stanlib," says Marisa Bellini, director of DSTi in SA.