SimCorp, a leading provider of integrated, front-to-back, multi-asset investment management solutions and services to the world’s largest buy-side institutions, today announces that the Health Employees Superannuation Trust Australia (HESTA) has chosen SimCorp’s cloud investment platform, SimCorp Dimension as a Service, to support its investment management functions.
The agreement* follows the decision announced earlier this year, to bring the management of a proportion of its Australian portfolio, in-house. The selection of SimCorp’s multi-asset investment management platform forms an integral role in HESTA’s ambitious investment strategy, delivering the scale needed to sustainably support the growth of its internal and external investments.
Formed in 1987 and serving more than 870,000 members, with $56 billion AUD in assets, HESTA is an Australian industry super fund dedicated to people working in health and community services. With a fast-growing membership, the fund is projecting ambitious growth in the next decade, with ambitions to reach the $100 billion mark. The selection of SimCorp Dimension as a Service, across its front office, will robustly support HESTA’s newly-adopted Total Portfolio Approach (TPA), delivering multi-asset coverage for the internal management of its Australian equities, cash and fixed interest portfolios.
In recent years, the Total Portfolio Approach (TPA), has become increasingly attractive to pension funds across the globe, promising more flexible decision making, better risk management and ultimately more resiliency within portfolios. The investment model provides HESTA with added agility, while one investment truth, delivered by SimCorp’s integrated Investment Book of Record (IBOR) will empower the investment team with a whole-of-fund view of both HESTA’s internally and externally managed investments, providing a timely and consolidated view of exposure, to enhance risk management and asset allocation decisions.
Additionally, SimCorp’s cloud investment platform brings a full suite of cutting-edge technology solutions and managed services to bolster HESTA’s front-to-back investment operations. This includes business intelligence and a data warehouse, that will consolidate all investment data sources into one central repository.
Oliver Johnson, Senior Vice President and Managing Director, SimCorp comments: “We are pleased to announce the partnership with the Health Employees Superannuation Trust Australia (HESTA). In recent years, we have seen many asset owners in Australia make the move to in-house investment management. Having supported some of the world’s largest pension funds, both in the region and globally, we are confident that the scope of our partnership, including vital front office delivery, together with a cloud infrastructure and managed services, will provide HESTA with a consolidated and complete offer to reinforce its investment operations and successfully deliver on its long-term business goals.”
Sonya Sawtell-Rickson, CIO, HESTA comments: “With our projected rapid growth and decision to internalize a portion of investment management, it was critical we found a partner who understood the needs of pension funds and could support our ability to scale, in order to provide cost savings for members. SimCorp, not only successfully demonstrated this, but also met the needs of our diverse investment universe. Our technology investment marks another significant step forward in the implementation of our investment strategy, which supports us to continue delivering strong, competitive long-term returns for members at the lowest achievable cost and risk exposure.”
*License agreement signed in October 2020 and already mentioned in the Q3 2020 Company Announcement date Nov. 12, 2002, as a new agreement signed after closing of Q3 2020.
Press release by SimCorp