The business will provide Investment administration services to Challenger, Fidante Partners and third-party clients.
The new company will be Australia’s first cloud-based front-to-back investment operations platform, providing fully integrated investment administration services for asset managers and owners across Australia and APAC.
Challenger has effectively automated and scaled its operations function to be one of the most efficient in the industry, leveraging SimCorp’s single front-to- back platform to support 17 individual boutique asset managers as well as its life insurance business. This partnership, and the formation of a new stand-alone company represents a natural extension of this service to provide this unique proposition to the broader market.
The company will be powered by SimCorp’s full technology and service stack, including data management, client communications as well as Investment Accounting Services.
In addition to offering best-in-class investment administration, the company will also offer its customers a broad range of technology solutions, including portfolio and order management tools, client reporting, and a cloud data warehouse. Existing Challenger employees who operate the platform will transition to support the new business in building a truly unique client proposition. Challenger’s current Group Chief Operating Officer, David Mackaway, will become the CEO of the business.
David Mackaway, commented: “This strategic partnership allows us to offer clients even more choice and flexibility by having one core platform. Our clients will be able to focus on what’s core to their business without worrying about maintaining and servicing third-party vendor partnerships or technology stacks. I believe the industry is at a key pivot point and is looking for partners to provide a cloud-based Business as a Service model with Front, Middle and Back Office components all operating from a single data source. In partnership with SimCorp we have the opportunity to embrace this pivot and offer the industry a new alternative. Challenger is excited to be part of this change as we transition our business to this operating model.”
Oliver Johnson, CCO, SimCorp, said: “This initiative builds on a 17-year partnership and is another example of the industry shifting to cloud-based, tech-enabled services business model. We have seen Challenger achieve best in class efficiency through automation and optimizing their usage of our platform and are excited to be able to offer this now to the broader market as firms look to focus on their core. The combination of Challenger’s experienced operations team, along with SimCorp’s technology and service offerings gives customers a unique opportunity to take advantage of the best of both worlds.”
As part of the agreement, Challenger will move its current on-premise SimCorp platform to SimCorp’s cloud-based solution.
Both parties have entered a non-binding MoU, as detailed in company announcement 22/2022 sent out by SimCorp on 19 May 2022, and the goal is to have the business established July 2022.
SimCorp offers industry-leading, front-to-back investment management solutions.
Our platform and ecosystem, comprising partners, services, and third-party connectivity empowers us to provide 40% of the world's top 100 financial companies with the efficiency and flexibility needed to succeed.
With over 25 offices around the world, and 2,000 employees, we are a truly global, collaborative team that connects every continent and industry seamlessly.
For more information, visit www.simcorp.com
Challenger Limited (Challenger) is an investment management firm focused on providing customers with financial security for a better retirement. Challenger operates three core investment businesses – a fiduciary Funds Management division, an APRA-regulated Life division and an APRA regulated authorised deposit-taking institution. Challenger Life Company Limited (Challenger Life) is Australia's largest provider of annuities
SimCorp: Alex McNab-Lundbäck – +4521314487 – [email protected]
Challenger: Jane Keeley - +61 402 663 522 - [email protected]