SimCorp debuts a cloud-based analytics platform.
SimCorp is launching a cloud-native performance attribution solution that targets the “growing demand” for accurate performance analytics delivered in real-time, officials say.
The new service is the first to be offered via SimCorp’s Investment Analytics Platform, the next stage of SimCorp’s performance measurement offerings, officials say. The new platform is “a calculation service … constructed on an API-first [application programming interface] architecture.”
“A performance attribution solution is a framework for deconstruction of returns and attributing them to various factors, such as asset allocation and security selection. Performance attribution helps investment managers assess the effectiveness of their investment strategy, whether it’s active, passive, or smart-beta with style factor tilting,” according to SimCorp. “By deconstructing portfolio performance into its smaller components, investment managers can showcase their expertise to demonstrate their value proposition to both new and existing investors.”
The new platform will use the data in the SimCorp investment management platform, encompassing all asset classes, according to the vendor.
“This design ensures that all assets and transactions are in the same system, meaning that users won’t have to manually pull data from multiple sources to determine the underlying exposures,” says Lars Ole Hansen, global product manager at SimCorp, in a prepared statement.
“Historically, calculating performance attribution figures has been an operationally heavy and time-consuming process. In effect, portfolio managers previously had to wait until well into the trading hours to obtain reliable performance metrics. However, advancements in cloud computing are changing this situation, enabling accurate and reliable performance measurement from the moment they start working in the morning,” according to SimCorp’s announcement.
The new platform will not have to be supplemented with tools for front office and portfolio analytics. Clients will only need a single system for performance measurement and attribution. “This consolidation can result in significant savings on additional licenses and reconciliation efforts,” Hansen says.
“SimCorp will further expand its offerings under the Investment Analytics Platform by introducing solutions related to ESG attribution and risk attribution as the next set of services,” according to the announcement.
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