Case Study: Challenger Limited achieves scalable business growth and reduced cost-to-income with SimCorp Dimension (SimCorp)

Expanding Business While Reducing Cost-To-Income Ratios

Challenger Limited, an Australian investment manager pursuing an aggressive growth strategy (targeting ~20% p.a.), faced the challenge of scaling a complex, multi-asset business while keeping costs and operational risk under control. To support rapid organic growth and multiple acquisitions, Challenger Limited chose SimCorp and implemented the SimCorp Dimension integrated investment management solution to provide a single, flexible, end-to-end platform for front, middle and back office operations.

SimCorp’s solution centralized Challenger Limited’s trade entry, valuation, unit pricing, performance, attribution and compliance into one book of records, eliminating duplication and improving control and scalability. The platform helped power major acquisitions (MetLife AUD 1.8bn in 2008, AXA AUD 1.3bn in 2009, High Yield AUD 0.4bn in 2011), supported annuity sales growing organically ~34% p.a., and saw fund management AUM rise from under AUD 1bn in 2007 to over AUD 19bn; revenue grew ~35% while the cost-to-income ratio fell from 49% to 36% over five years. SimCorp’s system therefore delivered measurable operational efficiencies, flexibility and improved cost metrics.

Challenger Limited

David Mackaway

General Manager