Private wealth

Meeting challenges in the private wealth management industry

The financial crisis has presented the private wealth management industry with many challenges. Shrinking assets, rising cost levels, sharpened focus on managing risk and downward pressure on fees are among the most immediate. However, in addition to these, are issues that may prove even more problematic such as changing and increasingly complex regulatory requirements and the question of how to restore investor trust and confidence.

Operating on a technology platform that offers efficiency, flexibility and transparency is key to the wealth management firm being able to address these challenges. SimCorp Dimension, the world’s most sophisticated enterprise solution, is that platform, allowing the private wealth manager to mitigate risk, reduce cost and enable growth. In a single system, SimCorp Dimension provides exceptional instrument support extending through the entire investment process - front, middle and back office - and facilitates a highly personalised service.

Improve transparency and efficiency across all operational processes

With SimCorp Dimension, private wealth managers can readily adapt to changes in requirements, as well as improve transparency and operational efficiency in business processes. This seamless processing system eliminates the need for internal system interfaces with their inherent risks and overheads. With no need to draw together and reconcile data from different systems, a precise picture of the present state of business is available at all times.

In order to increase transparency and to communicate more effectively with clients, SimCorp Dimension helps the private wealth manager to track and explain the source of investment performance by producing top quality, individually targeted client reports, with minimal manual input. SimCorp Dimension automates the entire client reporting workflow and offers a fully consolidated and transparent view of private clients holdings, based on external and internal data sources. When using SimCorp Dimension, the client manager will have all relevant information such as mandates, performance and risk profile at hand when communicating with clients.

Cost efficient bulk management of accounts

In order to achieve economies of scale in the investment management process, SimCorp Dimension provides model cloning and portfolio rebalancing of single or multiple accounts against models or lead funds, within client investment restrictions and management parameters. The portfolio manager can easily execute investment decisions on multiple portfolios whilst remaining in full visual control. All operations, including asset allocation, model rebalancing, strategy execution, cash management and currency overlay, are invoked in an all-encompassing process where a large number of accounts can be rebalanced/realigned to the targets set by a pre-defined model. 

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