SimCorp, a provider of investment management solutions and services to the global financial services industry, has opened a new office in Tokyo, Japan which will offer the company’s full suite of integrated solutions to the country’s asset management industry.
Japan’s investment management sector is one of the region’s most developed, yet it currently faces increasing pressures to keep pace with evolving market complexities, from demographic pressures and shifting investor risk appetite to regulatory changes and ultra-low-yielding bonds. Combined, these factors now call for institutional investors to seek a larger investment universe, outside of the traditional, domestic market. With its integrated, multi-asset investment platform, SimCorp aims to solve the operational challenge that many Japanese institutional investors face at this turning point, in being able to cost-effectively access and manage global investments together with traditional, domestic assets.
SimCorp’s presence in the Japanese market will further strengthen the engagement with Japan’s investment firms, to replace much of the outdated technology that dominates fund operations, including vital front office systems. As these firms start to diversify portfolios globally, scale, automation and functionality will become increasingly important in the successful management of non-Japanese, non-traditional assets.
Klaus Holse, Chief Executive Officer of SimCorp, says: “Over the past two decades, SimCorp has significantly grown its footprint in Asia Pacific and the region remains important in our global expansion. Our assessment of the Japanese market shows around 50 firms with the size and nature of business that could greatly benefit from our integrated front to back solution. Following several years of success and recognition received from clients who already rely on SimCorp Dimension in Japan, we believe now is the right time to enter this market.
“Our entry into Japan is particularly significant, given that its asset management industry is expected to play a greater role in opening up the flow of funds to the global markets. We believe that only organisations with the right integrated infrastructure will be able to efficiently manage high yielding assets, such as alternative investments, and meet the many other demands that come with global investment.”
Oliver Johnson, Managing Director, SimCorp APAC, says: “Domestic asset managers are increasingly looking to diversify their investment portfolios, especially into new and complex asset classes such as alternatives and derivatives, as they search for higher yield. There has also been an increasing focus on cost reduction and a growing need to simplify the system landscape, from order management systems (OMS) in the front office, through to back office accounting systems. We are excited to open this new office in Tokyo and, alongside our local partners, look forward to providing Japanese investment firms with the investment management solutions and full-service offerings, they are currently seeking.”