SimCorp, an integrated investment management platform, is planning to merge with Axioma, a global provider of factor risk models, portfolio construction tools, and multi-asset class enterprise risk solutions.
SimCorp said the merger with Axioma will strengthen combined market influence, and while focusing on the development of an open platform ecosystem strategy, the merger will also encourage Axioma’s marketplace innovation through the buy side.
Both companies have ties to Deutsche Börse Group: Simcorp completed a successful acquisition in September 2023, and Axioma has maintained a partnership since 2019 with Qontigo, subsidiary of the Deutsche Börse Group.
Since 2021, SimCorp clients have had the opportunity to use Axioma’s portfolio optimisation and risk analytics offering.
On the two companies working alongside one another, SimCorp’s chief executive officer Christian Kromann has noted the “flexible and holistic” approach that is being taken in terms of risk management.
Kromann observed improvements on global access since the partnership through Axioma’s core North American client base, and SimCorp’s primary growth market, which has allowed for SimCorp’s subsequent “presence in key markets”.
Along with the merger, SimCorp will continue its open platform strategy, offering clients full optionality and access to other risk management providers. Similarly, Axioma will remain available to other investment management platform providers.
Separately, Institutional Shareholder Services (ISS), a provider of corporate governance and responsible investment solutions and majority owned by Deutsche Börse Group, has completed a transaction to add Qontigo’s index business under the newly created ISS STOXX group of companies. The Qontigo index business will be rebranded as STOXX.
Under the ISS STOXX umbrella will sit the STOXX index businesses – which includes STOXX and DAX indices – as well as ISS’ four existing business lines: ISS Governance, ISS ESG, ISS Corporate Solutions, and ISS Market Intelligence.
The firm said that combining ISS’ robust and varied ESG and governance datasets with STOXX’s deep expertise in benchmark and custom index construction, as well as index production and operations, will allow ISS STOXX to compete effectively and on a global basis with all index providers.