AP3 and AP4 announced the result of a major joint IT procurement, with the Swedish national pensions buffer funds saying SimCorp’s Dimension system will allow faster investment decisions than can be managed with their current patchworks of systems.
Nicklas Wikström, head of risk and performance at AP4, said: “Our ambition is to replace a number of old existing systems with a comprehensive solution to achieve a flexible and appropriate system support where we can more quickly and efficiently meet changing needs from both the business and the outside world.”
With allocations to unlisted assets of 32% and 15% respectively, SimCorp said it had been important for AP3 and AP4 to have good functionality for alternative investments, performance, and risk, and be able to get an overall picture of the total portfolio in a single system.
The Danish technology provider said it and its partner Axioma would jointly provide a total portfolio risk overview across public and private assets.
Wikström said: “Our new portfolio management system solution is expected to lead to shorter time to even better informed analyses and investment decisions.
“Through reduced complexity in system infrastructure and management, the operational risks in AP4’s central business processes are also reduced,” he said.
The Stockholm-based buffer funds, which together manage some SEK997bn (€84bn) of money in the income pension system, said that with more efficient system support, time would also be freed up for strategically-important development and analysis.
The buffer funds analysed 13 bids in the tender process, and cited synergy benefits as the reason for a joint procurement.
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