SimCorp Launches New Alternative Investments Manager for The Buy Side Industry

- New functionality driven by continued growth in alternatives investments
- 62% of buy-side firms find alternatives challenging and costly to support
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SimCorp, a leading provider of investment management solutions and services to the global financial services industry, today announced the new modules and enhancements introduced with Release 6.3 of its flagship solution, SimCorp Dimension. A key feature in the first of this year’s bi-annual releases is a new Alternative Investments Manager, which enables buy-side firms to handle illiquid, alternative investment types, such as Private Equity, Real Estate and Infrastructure, alongside more traditional assets.

The Alternative Investments Manager offers the buy-side market an automated solution for its alternative investments, dispelling the need for niche systems and manual processes. Users can fully integrate the module with SimCorp Dimension’s IBOR (Investment Book of Record) to effectively support multi-asset investment strategies in one highly automated system.

As part of SimCorp’s strategic vision, the new Alternative Investments Manager provides the opportunity to further streamline processes across asset classes, as operational efficiency and cost reduction continue to dominate the global buy-side agenda. In a recent WBR InvestOps survey, 62% of the 100 North American buy-side firms questioned named alternatives and private debt as the most challenging and costly asset classes to support. The same survey found 80% of firms looking to system consolidation as their chief strategy for cost reduction in 2018.

The new Alternatives Investments Manager aims to better serve the growing number of ‘limited partners’ investing in alternatives. The module is a configurable 360° dashboard of invested assets, where users can view and edit all transactions, positions and securities. With ‘slice and dice’ analytics functionality, users can track performance based on a variety of criteria, enabling improved risk management and access to more granular data to make the most informed investment decisions.

Other highlights of SimCorp Dimension Release 6.3 are:

Strategy Manager for Solvency II

The first of this year’s two SimCorp Dimension releases also introduces the Strategy Manager. This is a new solution that provides enhanced functionality for compliance with Solvency II. Since its introduction, Solvency II has pressed firms to carry out more in-depth analysis of the various investment outcomes on their Solvency Capital Requirement and consider this analysis more actively in their investment decisions. By introducing the new ‘what-if’ functionality, the Strategy Manager solution enables users to simulate different strategies and actively manage Solvency Capital Requirements. This analysis is valuable to pension funds and insurers, for steering their strategy and investments and for deciding how to handle large market movements. The solution is equally valuable for asset managers with a wish to provide best-in-class services to asset owners.

Collateral Management

Release 6.3 integrates front office and collateral management workflows, initially enabling portfolio managers to block positions from the collateral pledging process. Operational improvements include short checks on collateral pledges and recalls, usability enhancements in the recently released Margin Manager and dashboards, and extended instrument support.

MiFID II

Release 6.3 completes SimCorp’s delivery of functionality to support MiFID II compliance. Seamlessly integrated across front office and IBOR, the solution offers the workflows needed to establish automated T+1 Article 26 transaction reporting and real-time trade reporting via FIX. In addition, interfaces with trading venues have been updated to offer compliance with MiFID II’s order record keeping requirements.

Commenting on the new SimCorp Dimension release, Marc Schröter, SVP of SimCorp Product Management said: “Many investment managers are starting to realize the need for integrated and automated IT platforms to reduce costs and operate more efficiently. The new Alternative Investments Manager is significant, because it enables the buy side to manage all asset classes in one unified solution, powered by an IBOR at the core of the investment system. By investing 20% of our annual revenue into R&D, we will continue innovating our offering, including alternatives, to provide the buy side with the forward-looking functionality they need.”

The next version of SimCorp Dimension will be released in August 2018.

Enquiries regarding this announcement should be addressed to:
Mittal Shah, SimCorp UK/North America +44 207 397 8072 mittal.shah@simcorp.com
Anders Crillesen, Group Communications Director, (+45 2779 1286) anders.crillesen@simcorp.com

About SimCorp
SimCorp provides integrated, best-in-class investment management solutions to the world’s leading asset managers, fund managers, asset servicers, pension and insurance funds, wealth managers, and sovereign wealth funds. Whether deployed on premise or as an ASP solution, its core system, SimCorp Dimension, supports the entire investment value chain and range of instruments, all based on a market-leading IBOR. SimCorp invests more than 20% of its annual revenue in R&D, helping clients develop their business and stay ahead of ever-changing industry demands. Listed on NASDAQ Copenhagen, SimCorp is a global company, regionally covering all of Europe, North America, and Asia Pacific. For more information, please visit www.simcorp.com.