With implementation completing in less than three months, the pension fund is running all its alternatives assets, totaling EUR 4 billion, on SimCorp’s alternatives solution, dramatically streamlining its investment operations. Pensam is the latest to join in the growing trend of buy-side firms moving towards multi-asset platforms, to achieve low-cost asset diversification and capture vital alpha from fast-growing alternatives.
With 477,000 members and an increasing alternatives allocation, Pensam, like many buy-side firms executing multi-asset strategies, suffered from lack of efficiencies in their alternatives investments workflows. Given the many nuances of alternative investments data, it struggled with processes such as risk management, performance and reporting. This is not an isolated case: a recent SimCorp commissioned survey of 100 buy side Heads of Operations found that as many as 80% want to see alternatives consolidated onto a single front-to-back platform, to achieve cost efficiencies and critically improve data and operational support of alternatives, such as private debt, real estate and infrastructure.
Since going live on SimCorp’s Alternative Investment Manager, Pensam has removed several siloed systems and moved onto a consolidated platform, providing validated information seamlessly across the organization. Reducing systems, together with hours of arduous manual reconciliation, has eliminated much of the considerable operational risk the pension fund had accumulated over the years. At the same time, centralizing alternatives data has had a significant effect on Pensam’s ability to accomplish timely decomposition of portfolios.
As a result, Pensam has been able to refocus resources to more value-added tasks, from financial planning to asset allocation optimization. Performing analytics, using the solution’s advanced and configurable dashboard, has also enabled the pension fund to gain a deeper understanding of its alternatives allocations. Pensam can now easily view and edit all transactions, positions and securities, as well as track performance based on a variety of criteria, delivering improved risk management and enabling Pensam to make more informed investment decisions.
Hans Otto Engkilde, Managing Director and Senior Vice President, SimCorp UK, Northern Europe and Middle East comments: “SimCorp has always had a strong belief in the benefits of a consolidated investment platform that can traverse all asset classes. We feel it is the most efficient and operationally sound way to deal with current buy-side challenges and gain the agility needed to compete effectively in today’s global market. Pensam’s transformation, together with the operational efficiency they’ve achieved, is a testament to this and we are proud to have shared in their journey, through the development partnership.”
Thomas Anker, Application Manager at Pensam comments: “We are extremely pleased with the positive impact that SimCorp Dimension and system consolidation has had on our business. SimCorp’s Alternative Investments Manager has been instrumental in reshaping our approach to alternatives investments, delivering the real time overview of investment data, that is crucial to our investment decision making. With phase one successfully completed, we are looking at upcoming modules where we can track changes in our exposure and gain more thorough insights into our portfolios. Going forward, this will be a real game changer for us.”
Enquiries regarding this announcement should be addressed to:
Mittal Shah, SimCorp PR UK/North America/Asia +44 207 397 8072 [email protected]
Anders Crillesen, SimCorp Corporate Communications +45 3544 6474 [email protected]
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. Regardless of how you deploy it, SimCorp’s core solution, SimCorp Dimension©, and its life-cycle services support the entire investment value chain and range of instruments, all based on a market-leading IBOR. SimCorp invests around 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.