Hesta selects SimCorp Dimension to power new portfolio strategy
Australia-based Health Employees Superannuation Trust (Hesta) has selected SimCorp Dimension, deploying it on an “as-a-service” basis.
Hesta is an Australian industry super fund for the country’s health and community services. Its decision follows the firm planning to move a section of its portfolio in-house.
The new strategy, called a total portfolio approach (TPA), is a more dynamic method of portfolio construction. It involves providing capital for all investment opportunities instead of filling asset classes.
“It was critical we found a partner who understood the needs of pension funds,” says Sonya Sawtell-Rickson, chief investment officer (CIO) at Hesta.
“Our technology investment marks another significant step forward in the implementation of our investment strategy.”
Founded in 1987, Hesta has more than 870,000 members, with AUD 56 billion ($42.7 billion). The firm plans to reach AUD 100 billion in assets with its new strategy.
Superannuation accounts are compulsory for Australian citizens, and provide income after retirement. Australians hold around AUD 2.7 trillion in superannuation assets.
The firm says its selection of SimCorp will deliver “the scale needed to sustainably support” the growth of its internal and external investments”.
“In recent years, we have seen many asset owners in Australia make the move to in-house investment management,” says Oliver Johnson, a managing director at SimCorp.
He adds that Dimension will reinforce Hesta’s investment operations and “successfully deliver on its long-term business goals”.
In August 2020, SimCorp put Dimension solution on the cloud, signing a marquee deal with Microsoft.