Pension Funds

Enable agility, flexibility and faster time-to-market

When you are entrusted with people’s future retirement, you want to ensure that your assets under management are secure. This doesn’t just require a safe investment strategy, it also necessitates a secure investment management platform.

Good investment decisions start with having a holistic, accurate and real-time view on your complete portfolio across all assets - public and private assets, liquid and illiquid assets, internal and externally managed assets. Our integrated multi-asset platform underpinned by a transaction-based Investment Book of Record covers the full investment value chain from front to back, including accounting and reporting. 

THE FIVE MISSION-CRITICAL AREAS TO ADDRESS

 
1  Pension
2  Pension
3  Pension
4  Pension
5  Pension
 

1: Enhance operational resilience 

Pension funds are challenged with generating sufficient returns to provide adequate and sustainable retirement incomes for an aging population, especially in a persistent low-rate environment. Add in the COVID-19 crisis and increased volatility and there is an urgency to stabilize your funding ratio compared to reserves.  

An agile operating platform can minimize operational friction and improve your operational efficiency. 


Why partner with SimCorp

Get access to a proven and mature integrated F2B platform, with a best-of-breed IBOR and accounting engine, that caters to both your current business needs, but is also easily scalable to support your future growth through its modular approach, interconnectivity and broad “off the shelf” coverage in terms of instruments, currencies, workflows. 

By removing workarounds and manual intervention you’ll streamline and automate end to end processes and free up time for more value adding tasks and focus on core business. 

Benefit from our open platform to integration to third party tools or via one of our Custodian and asset servicers Partnership Model to support you increasing your STP rate, simplifying workflows and delivering better and more timely data across your organization. 

 

How PenSam reduced data processing and cut operational risk in their alternatives portfolio

Merging alternative investments into their core system has helped Danish pension firm PenSam reduce data processing and cut operational risk. Watch how they did it.

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2: Diversification is a necessity 

Thanks to the COVID-19 crisis, interest rates – and thus investment yields – are expected to remain low for longer. Pension funds are under greater pressure to generate sufficient returns to fund future liabilities. This situation forces you into more drastic portfolio shakeups. 


Why partner with SimCorp

Make better investment decisions by having a holistic and transparent view of all investment exposures through a single, consolidated and integrated platform across public and private assets and for internally and externally managed assets. 

SimCorp helps you manage private debt and derivatives in one front-to-back integrated platform, supporting pre-trade compliance, collateral management, lifecycles and end-to-end workflow across asset classes, allowing you to launch new investment strategies quickly and quickly adapt to changing market conditions. Integrate diverse ESG metrics from different sources into your portfolio management process through our unified data layer and be compliant with new ESG regulations, like the EU’s SFDR. 

 

Consolidating with Alternative Investments Manager

As a major investor in alternative investments, ATP saw great value from consolidating their IT platforms from two systems, down to one – and the benefits that came with it.

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3: Insourcing vs. outsourcing  

An agile approach to portfolio management allows you to jump on market opportunities quickly so you can increase diversification. It also helps you decide where to keep focus on internal portfolio management and where to outsource. 

Managing risk exposures for internal and external managed assets takes on a new importance in a volatile market environment where investment returns are under pressure and liquidity can disappear quickly. 

Why partner with SimCorp

With SimCorp you have the flexibility to choose the operating model that best supports your business needs. For example, outsourcing data cleansing and validation of market and reference data minimizes data breaks, reconciliation, differences in valuation and exposures and allows you to keep full control and ownership on your data. 

Insourcing management mandates allows you to keep tighter control, reduce fee pressure and manage risks if the performance of your external managers is not what you expected it to be. 


Zurich Group Investment Management transforms operating model with SimCorp Datacare

Two senior leaders from the Investment Management function of Zurich Insurance Group share their experiences after transitioning from an on-premise enterprise data management platform to Data as a Service (DaaS).

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4: Reporting and investment transparency 

The pandemic has shown that digital transformation is needed for more effective communications with clients and employees across varied locations and work environments. 

The funding gap in major pension markets coupled with the low-yield environment and changing expectations will drive the development of new pension products, which in many cases will mean a move away from mutualized pension schemes towards more individualized pension products where the participants will bear more of the risk. These products will need a more personalized approach to reporting. 


Why partner with SimCorp

Our managed services offered in the cloud support flexible working conditions and reduce dependencies on in-house technical expertise, which reduces your total cost of infrastructure (TCO).  

A dynamic digital platform based on our award-winning Investment Book of Record will help you improve collaboration across the investment value chain and communicate transparently with internal and external stakeholders. Stay ahead of all regulations, including ESG rules, with support from our Regulatory Center of Excellence, a team of experts who continuously monitor the regulatory landscape and offer standardized solutions. 


Moving core IT platform and data management capabilities to the cloud

The subsidiary of Norway's largest pension fund, KLP Kapitalforvaltning AS (KLP) was faced with the challenge of applying more internal IT resources to maintain the operations of their increasingly complex and large applications in-house, or out-task these activities to allow them to focus on their core business and respond faster to new market opportunities.

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5: Total Portfolio Approach (TPA)  

The COVID-19 crisis coupled with market volatility and low yields has pushed many Pension Funds to review their portfolio construction to focus on driving investment performance and alpha. The promises of TPA – more nimble and flexible decision making, better risk management, more resilient portfolios– are increasingly attractive to asset owners amid these uncertain market conditions.  


Why partner with SimCorp

TPA offers an increasingly viable option to address the unpredictability of markets—including the governance, benchmark and inertia drags inherent in more traditional Strategic Asset Allocation (SAA)-based methodologies. SimCorp’s integrated platform has built-in standard and complex risk analytics to help you control your risk and improve the quality of decision making.  

  • Run multiple simulations and risk scenarios simultaneously
  • Access opportunities that lie outside of conventional asset class buckets
  • Leverage and generate value from your data with a full lineage information
  • Reach your sustainability goals by integrating ESG funds into the portfolio construction

 

Total Portfolio Approach: The portfolio of the future?

The Total Portfolio Approach (TPA) has been adopted by leading asset managers around the world as a viable option to address today’s market unpredictability. Learn more in this report.

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