Investment management firm Challenger and SaaS investment management solutions provider SimCorp have signed a non-binding memorandum of understanding in their partnership to launch a new standalone investment administration company.
The new company will mark Australia’s first cloud-based front-to-back investment operations platform.
Challenger’s automated and scaled operations function currently leverages SimCorp’s single front-to-back platform to support asset managers — the new standalone company indicates a natural extension of this service to the wider market, as it will be powered by SimCorp’s full technology and data stack.
The new business will provide fully-integrated investment administration services to Challenger, Fidante Partners and third-party clients, asset managers and owners across Australia and the Asia Pacific region.
In addition, the standalone company will administer a range of technology solutions, such as portfolio and order management tools, client reporting, and a cloud data warehouse.
David Mackaway, currently group chief operating officer at Challenger, will assume the role of CEO of the new business, while existing Challenger employees responsible for operating the platform will transition to support the new business.
Mackaway comments: “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 is core to their business without worrying about maintaining and servicing third-party vendor partnerships or technology stacks.
“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.”
Oliver Johnson, chief commercial officer at SimCorp, adds: “This initiative builds on a 17-year partnership and is another example of the industry shifting to cloud-based, tech-enabled services business model. 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.”
The non-binding memorandum of understanding aims to establish the new business in July 2022.
