Swedish national pension funds AP3 and AP4 have chosen SimCorp for portfolio management.
Under the agreement, SimCorp will deliver a software-as-a-service system spanning the entire investment management value chain. Together, AP3 and AP4 manage approximately €100 billion in assets.
SimCorp’s system is built on a data-centric architecture to ensure long-term success in volatile markets. It includes an investment book of record integrated into the system and an end-of-day holding in an accounting book of record.
The system offers features for alternative investments, performance, and risk. In collaboration with Axioma, it provides a portfolio risk overview encompassing both public and private assets, which is crucial due to the funds’ investments in unlisted assets, according to Simcorp.
During the procurement process for the portfolio management system, AP3 and AP4 identified key areas of focus. These included back-office and accounting services for financial assets, front-office operations, middle-office data and analysis capabilities for data management, analysis and portfolio valuation.
Additionally, the requirements included investment compliance, the ability to handle alternative investments, insights into performance analytics, risk analytics for risk control, analysis and reporting.
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