Next Generation Performance Update
- Thomas Mogensen
- Jun 19
- 6 min read
In our blog from November 2022, we discussed SimCorp’s then-recent initiative to transition from its native performance solution in SimCorp Dimension to the cloud-based Investment Analytics Platform, also known as IAP.
Since then, the IAP solution has made significant strides, with SimCorp continually investing in R&D to enhance its functional capabilities.
Lars Ole Hansen, Senior Director, Product Management at SimCorp, at the SimCorp Global Summit in Barcelona (April 2025), Lars-Ole Hansen, presented the latest updates to the next-generation performance and attribution solution, powered by IAP.
The IAP solution enables real-time investment decision making, built on cloud computing and fully redesigned, intuitive web UI. This interface is not only flexible and configurable but also user-friendly across roles.
The new web UI is designed for more than just performance analysts. As part of its Total Portfolio Management strategy, SimCorp is rolling out this interface to all business users, consolidating siloed cockpits into unified framework. This includes a next generation web user interface for Front Office, now enhanced with an embedded AI Copilot, enabling users to generate graphs, pie charts, pivot tables, and more by simply typing natural language instructions.
These cloud-based solutions continue to be based on the core underlying data from the fully reconciled IBOR and ABOR solutions present in the SimCorp One platform today. Specifically for the IAP, it sources the core PBOR data from the Performance Calculation for market values and cash flows amongst others at the lowest holding key e.g. security level, and the Benchmark Calculation for constituent and total level index data.
The PBOR in SimCorp One is kept synchronized with the cloud components of the IAP and analytics are delivered to the consumer via web API’s covering both Performance Measurement and Attribution.
For clients not using the SimCorp IBOR, it’s possible to deploy Axioma Risk as a standalone solution, using a “flush and fill” approach to ingest master data from other systems. In this scenario, returns are holding-based rather than transaction-based.
Calculation speed and responsiveness remain top priorities. Each time a user changes a setup, e.g. by adding a new breakdown level, excluding a sector, or changing the index, the system recalculates in real time. SimCorp, in collaboration with major clients, has tested performance extensively. For instance, recalculating YTD security-level attribution for portfolio with over 100,000 positions takes less than half a second, significantly faster compared to the same in the native solution. That is very impressive indeed.
Putting this into perspective from a daily workflow, when moving from the existing native Performance Manager to the IAP performance solution, performance analysts can now deliver reports early in the day, generate custom analytics in seconds, and meet stakeholder requests within hours, rather than days or weeks previously required. Lastly, and maybe most importantly to many clients, SimCorp now have one framework applicable to all functional areas rather than silo cockpits specific to each investment team. This will address the Total Portfolio Management concept, where clients can view all asset classes including relevant analytics in one place.
Another significant benefit of the new framework is that it is uniquely suited for non-standard system users such as C-level executives. In the native solution, a CIO or CEO would unlikely be given access to the classic Performance Manager, more likely they would have access to a SimCorp Dashboard, but these are still dependent on a batch driven calculation flow. Giving decision makers access to the new GUI framework will empower all users, and not just specific business team members, to gain the most out of SimCorp One, especially as they can now easily derive and configure their own carts and setups through the embedded AI Copilot.
Recent Enhancements
Lars Ole Hansen presented the latest enhancements now available in the IAP solution:
Equity Attribution, Brinson style (BF/BHB)
Drill down by any attribute including Investment Structure
Portfolio vs Portfolio and Benchmark vs Benchmark analysis
IAP performance stand-alone with Axioma Risk
Synthetic FX hedging and Currency management
Investment Mandates for aggregate reporting
Fund and Derivatives look-through
If you have questions about any of these topics, do get in touch with your local customer success manager at SimCorp.
Where to from here?
SimCorp has a clear strategic roadmap but remains open to client input via development partnerships. These collaborations allow clients to shape the product in alignment with their needs, benefiting all users over time.
Integration of Axioma Factor Models into the IAP
Alongside this, SimCorp continue their strategic development, including the integration of Axioma Factor Models into the IAP, enabling reporting hybrid attribution in a multi asset class and multi factor model. This will significantly enhance the user experience and is expected to attract interest from a broader spectrum of clients.
Lars Ole Hansen clarified that:
“With the merger between SimCorp and Axioma, we have a unique opportunity to benefit from the fundamental research and risk models as part of Axioma solutions. . As a first step, we enable IAP Performance for Axioma Risk clients for a full stand-alone Risk+Performance offer to the front office. But we are even more excited about bringing the fundamental risk factor models into the future multi-asset-class attribution model. The platform has had an advanced fixed income attribution model for years, but extending this with factor attribution gives us a unique opportunity to deliver the best of the two worlds”.
Import of Historical and Official Returns
Planned functionality will allow users to import historical or official returns and lock them down for chained returns. These can be integrated with active data to generate daily or monthly aggregated-level results.
Performance Controlling
Another anticipated enhancement is performance controlling where Performance Analysts will gain tools to identify and investigate anomalies (spikes, outliers). SimCorp is leveraging statistical and machine learning models to detect and highlight such anomalies.
In addition to identifying outliers, users can also drill down from a position to individual transactions in IBOR to pinpoint and resolve root causes.
Additional Enhancements on the Horizon
SimCorp is also planning to enhance the IAP solution with look-through of Alternative Investments, Fixed Income Attribution, Top-down decision-based attribution, Neutral benchmarks, and applying authorisations in the framework GUI.
We are very much looking forward continuing the IAP journey with SimCorp. The future looks very bright indeed in the PBOR space. We would love to get your feedback and if this is something you are considering or have further questions, please don’t hesitate to reach out.
FAQ
After the SimCorp Global Summit in Barcelona, where SimCorp provided in-depth insights to the IAP solution, I had a detailed discussion with Lars Ole Hansen. We covered some of the recent interactions he has had, with clients and buy side organizations, regarding the new cloud framework concept and the IAP solution.
Q: What is the effort required to implement IAP if I am already using Performance Manager?
A: The core PBOR will continue to be SimCorp Dimension’s Performance Calculation and Benchmark Calculation. It provides full and detailed history and hence the onboarding to IAP comes with very little effort, usually a few weeks of calendar time. Obviously, there is a follow-up project to migrate the data flow to the Data Warehouse (DWH) and downstream reporting flows, but this can be done gradually as IAP and Performance Manager use the same base data and can run in parallel, while phasing out the latter.
Q: Will Performance users benefit from the merger between SimCorp and Axioma?
A: Yes, absolutely. The first step was to enable the IAP (performance) solution for Axioma Risk clients not using SimCorp for IBOR. The next step is to integrate the Axioma Risk Factors for the new multi-asset factor attribution solution in IAP.
Q: Is the IAP solution part of SimCorp’s SaaS cloud solution for SimCorp Dimension?
A: Whilst the IAP is part of SimCorp’s SaaS offering, it is not linked with the SaaS offering specific to SimCorp Dimension. The IAP is deployed, upgraded and operated as a separate service. Therefore, the IAP solution can be in place separately with Axioma Risk or alongside SimCorp Dimension hosted in the cloud or on-premise.
Q: Do enhancements to the IAP solution require an upgrade of SimCorp One (Incorporating Dimension)?
A: No, not in most cases. Enhancements which are specific to the IAP solution alone, can be promoted throughout the lifecycle without patching or upgrading the platform. These updates to the code are applied directly into the cloud solution and are not related to the SimCorp Dimension Oracle database. The only instance where patching or upgrading is required is when the enhancement is dependent on a code change to the table structure within the SimCorp Dimension Oracle database at the same time. An example of this is where a new window is developed inside SimCorp Dimension where new data is stored e.g. as the case was for the recent development of Investment Mandates.
Q: Can the results in the IAP solution be used for downstream reporting e.g. via a DWH?
A: Yes. Integration between the IAP solution, SimCorp’s DWH, a proprietary DWH, and/or any other third-party downstream reporting systems are done via API’s. These can be written either by SimCorp or the clients themselves.
