How we helped a large asset manager simplify operations for scale

The challenge 

As their client base continued to expand rapidly, the firm needed to find a way to scale their operations in the most efficient manner without significantly increasing their resources—all while being able to respond to swift market pivots and stay ahead of competition. 

Before partnering with SimCorp, this asset manager was grappling with multiple disparate systems and a separate accounting platform that incorporated latency and disjointed processes—a fragmented landscape that wasn’t scalable and couldn’t keep up with the unprecedented pace of change. In the end, lack of visibility on exposures, insights and risks across the portfolio contributed to the mounting costs of doing business.

The solution 

SimCorp’s end-to-end investment platform provided a seamless, scalable workflow for the client that spanned the entire investment value chain across all asset classes—ensuring a total portfolio view, in real time. This meant immediate insights into valuations for current positions across both public and private market assets, risk management, performance, cash flow, and essential compliance checks—all critical to respond to fast changing market conditions and make the most informed decisions.

More specifically, SimCorp provided: 

1. Holistic asset coverage: The asset manager required a platform capable of handling the intricate asset allocation needs of their diverse clientele. This included both private and public asset classes. Our solution provided real-time insights and streamlined asset allocation processes, ensuring efficient management across the entire investment spectrum. 
2. Front office support: Their front office demanded flexibility in handling a wide range of securities within their investment portfolio. Our platform enabled tailored configuration by establishing integrations to their fintech tools and system, thus empowering portfolio managers to adapt swiftly to market dynamics and unique investment scenarios.
3. Risk management: Effective risk management was critical for the asset manager. We enhanced their risk practices by implementing standardized reporting frameworks and providing them with a real time total portfolio view across all financial instruments. This ensured they had comprehensive oversight of their exposures at all times, together with robust regulatory reporting and collateral management. 
4. Scalable infrastructure: They urgently needed a scalable infrastructure to accommodate their rapid growth. By automating tasks such as testing, deployment, and provisioning, we streamlined their processes and optimized time-to-market. 

The business value 

Simplicity

SimCorp provided a singular Investment Book of Record (IBOR) needed to support their complete business lifecycle, simplifying their operational processes with a real-time total portfolio across all asset classes.  

Agility 

In addition to operational efficiencies, they also benefited from the agility to manage sudden market fluctuations. This was made apparent during the onset of the COVID-19 pandemic, where they managed a three-fold increase in collateral margin calls and a five-fold increase in FX margin calls as business as usual. 

Automation 

SimCorp ensured internal teams had the required knowledge to manage the rules-based application and use the platform to its full potential. This helped streamline processes internally and has significantly reduced operational risk by removing manual and time-consuming processes through automation of various tasks.  

Empowerment 

Most importantly, the asset manager is now able to onboard new clients with different sets of investment management rules and guidelines without the need to outsource those tasks.

It also enables their employees to present ideas about enhancements and improve the lifecycle of each instrument type.