SimCorp, IntelliBonds to collaborate on AI-enhanced fixed income portfolios

On the 12/09/20 at 2:25PM


Adrien Paredes-Vanheule

SimCorp, the Danish provider of investment management software solutions, will work together with London-based artificial intelligence fintech IntelliBonds on AI innovation with a view to enhance fixed income portfolio construction and optimisation. In a joint statement, the firms said the partnership will “bolster buy-side firms with improved productivity and portfolio returns, using cloud-based, AI-augmented workflows.”

IntelliBonds’ Portfolio Assist AI-augmented platform uses machine learning and has virtual AI assistants testing and monitoring investment strategies. Il also draws portfolio-specific trade ideas and risk warnings. Concretly, IntelliBonds will provide SimCorp clients with fully integrated workflows and processes, with a real-time dashboard of current holdings, and security and price master data for portfolio construction, rebalancing and optimisation. This will be integrated directly into front office data flows, such as analytics, pre trade compliance and order execution within SimCorp Dimension.

Anders Kirkeby, head of open innovation, SimCorp commented“The partnership is particularly timely given the lean margins many buy-side firms are running on, following challenging conditions this year. It is also significant for an industry largely operating remotely, and where internal innovation projects may be put on the backburner."

Igor Tesinsky, founder and CEO, IntelliBonds, believes margin erosion in the investment industry cannot be stopped without technological transformation. He added: “The impact of Covid-19, the low-yield environment and margin pressures have made internal innovation too risky or costly. To address this, partnerships between established solution providers, like SimCorp and IntelliBonds, can deliver superior technology to asset management clients with minimal risk, at the time when it’s needed most.”