Swedish national pension funds AP3 and AP4 have selected SimCorp for portfolio management.
As part of the agreement, SimCorp will provide a front-to-back, software-as-a-service (SaaS) system covering the entire investment management value chain.
AP3 and AP4 are two of five buffer funds in the Swedish public pension system. Collectively, they hold approximately €100 billion in assets under management.
SimCorp’s system is based on a data-centric architecture in order to facilitate long-term success in uncertain markets. An Investment Book of Record is integrated into the system, and an end-of-day holding is provided in an Accounting Book of Record.
The system provides functionality around alternative investments, performance and risk. In partnership with Axioma, a holistic portfolio risk overview covering both public and private assets will be available. This is pertinent given the funds’ investments in unlisted assets, Simcorp says.
A number of key areas were identified by AP3 and AP4 during the portfolio management system procurement process. These included back-office and accounting services for financial assets, front-office operations and middle-office data and analysis capabilities in order to provide data management, analysis and portfolio valuation.
Additionally, investment compliance, the ability to incorporate alternative investments and performance analytics insights were highlighted as key requirements. The ability to provide risk analytics for risk control, analysis and reporting were also considered.
Commenting on the new system, Eva Boric, chief financial officer and chief revenue officer at AP3, says: “We must ensure efficient processes across the entire organisation, qualitative and timely data for analysis and the ability to adjust to changing conditions internally or externally.
“Our previous more complex infrastructure was not fit for future purpose. A handful of best-of-breed systems will be replaced, which will reduce the complexity in system management and increase our operational efficiency.”
Ralf Schmüker, managing director for EMEA at SimCorp, states: “The strength of the SimCorp platform combined with Axioma’s risk management solutions will allow AP3 and AP4 to future-proof their investment management operations. Our front office and alternative investments solutions will provide AP3 and AP4's portfolio managers with a consolidated overview across all asset classes and enable them to execute their investment decisions quickly and confidently.
“Delivering our investment management platform through our SaaS platform empowers AP3 and AP4 to streamline their operations by using the latest advancements in automated processes, enhancing their operational efficiency.”
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