Global investment back-office software specialist, Confluence, is starting to hit the radar of NZ firms as the thirst for data analytics and risk management tools intensifies, according to local distributor, Guy Dobson.
Dobson, head of wholesale investment services business Dynamique, said the group was in “early stage discussions” with several local managers interested in the Confluence offer, which already has one large NZ institutional client.
The Pittsburgh-headquartered Confluence boasts over 400 clients globally, including the National Australia Bank, targeting mostly large asset owners and fund managers. In 2019, Confluence – a provider of data aggregation tools for asset reporting – bought the UK firm StatPro, which offers cloud-based portfolio valuation, reporting, attribution, and risk analytics to the investment industry.
StatPro entered the NZ market in 2017 in a distribution deal with Dynamique.
But Confluence is now looking to ramp up its efforts in the NZ market, Dobson said, as the investment industry here continues to grow while also facing more intense regulatory, client reporting and data analytic challenges.
In a note, Confluence says it had “identified many areas where with better data intelligence, asset owners can step up a level in performance”.
“Wealth managers’ job over the next few years is to really make their clients assets sweat,” the note says. “You need to have the latest digital tools to identify where value is being won or lost.”
The company says asset owners and investment managers are increasingly turning to software-as-as-service providers to help with:
- investment decision making;
- comprehensive risk analytics;
- resolving complex data challenges; and,
- manage data-driven regulatory risk, compliance and reporting.
Dobson said the Sydney Confluence office also supports Dynamique in servicing NZ clients.
Earlier this April, Confluence bought the Czech Republic-based Fundpeak – a producer of “multilingual factsheets for marketing purposes and to meet local regulatory reporting requirements in more than 30 countries”, according to a statement.
Mark Evans, Confluence chief, said in the release that Fundpeak was “a company with tremendous technological capabilities and a focus on providing clients with transformative tools to help the market best service fund shareholders”.
While its clientbase is concentrated in Europe, Fundpeak also has customers in the US, Asia, South America, Africa and Australia.
TA Associates – which has ownership stakes in Fisher Funds and Russell Investments – bought a majority share in Confluence in 2018.