Simcorp establishes presence in Luxembourg to address fund admins first and then turn to the insurance industry

The Danish software and know-how provider to financial sectors, which […]

September 17, 2010

The Danish software and know-how provider to financial sectors, which opened an office in Luxembourg last July, officialized the strategic step this week.

“The Luxembourg market is for us extremely important and represent for our group a strong growth potential, ” Troels P. Jensen, SimCorp Benelux’ managing director, explained.

The new Benelux branch (to hire soon 4 staff and later 10 consultants) targets fund managers with more than 4 billion dollar AuM, with a front-to-back enterprise platform called SimCorp Dimension. According to Jensen, the packaged application proposes an integrated, automated and single-database solution, which “can meet the requirements in the market by offering sustainable cost reduction, holistic risk mitigation and a scalable platform enabling growth.”

Stepping into the market

The group, which previously operated in the Grand Duchy from its Belgium-based Western European Headquarter, holds 15% of a Luxembourg market controlled by IGEFI’s MultiFonds and SunGard’s GP3
Simcorp’s challenge is therefore to convince local funds managers to replace their plate-forms with SimCorp Dimension. It aims to build a portfolio of 45 to 50 new fund admins. Both Nomura and Nordea already agreed to implement the application.

Simcorp affirmatively positions in the post-crisis era and targets actively fund managers servicing German customers. According to Jensen, the group occupies already 70 to 75% of the German market on that segment.

Most of the 44 German banks operating in Luxembourg manage funds locally domiciled products on behalf of their sister companies within their group. Those drain the capital of millions of customers they serve via their regional detail bank networks. The major investment vehicles they offer are pension-, private banking-and real estate-related.

According to CSSF, the Luxembourg finance sector regulator, 2,019 billion euro net assets of UCIs were under management as at 1st July 2010. A market Simcorp wishes to be part of: “We see in Luxembourg that the activity restarts in the country, with an increase in the transactions volumes. We see an extraordinary creativity and a strong need in new fund products, Troels P. Jensen states.

Targeting the insurance industry 

In the mid-term he expects to enter the Luxembourgish insurance market, which counts 53 life-insurance companies and 4 pension funds. According to Commissariat aux Assurances, the local regulator for the industry, life insurance companies operating from Luxembourg collected 1,12 billion euro of premium in 2009, or 89,3% of the total collection for the whole sector.

Simcorp “Commissariat aux Assurances” “CSSF” “SimCorp Dimension” Simcorp “fund management” IGEFI SunGard Luxembourg “Troels P. Jensen” Nomura Nordea

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