SS&C Signs Long-Term Agreement with DDH Graham to Deliver Services

Rhea-AI Summary

SS&C Technologies Holdings, Inc. has signed a long-term agreement with DDH Graham Limited to provide superannuation and funds management administration services. DDH manages over $7.8 billion in funds for 34 fund managers and superannuation funds in Australia. SS&C will deliver member and investor administration, including unit registry and fund services, for DDH and their clients. Approximately 70 team members will transfer from DDH to SS&C, ensuring no service interruptions for customers.

Insights

Market Research Analyst

The agreement between SS&C Technologies Holdings, Inc. and DDH Graham Limited marks a strategic move in the financial services outsourcing sector. This partnership will likely strengthen SS&C's position in the Australian market, particularly in superannuation and funds management administration. From a market perspective, the outsourcing agreement is indicative of the growing trend among financial institutions to leverage external expertise to enhance operational efficiency and technology capabilities.

Moreover, the deal's impact on SS&C's revenue growth could be substantial, given the $7.8 billion in funds managed and administered by DDH. This expansion could lead to increased market share and improved economies of scale for SS&C, which in turn might reflect positively on their stock performance as investors often look favorably on growth and expansion strategies.

Financial Analyst

The long-term nature of the agreement suggests a stable and potentially growing revenue stream for SS&C. The transfer of 70 team members from DDH to SS&C could also mean an infusion of industry-specific knowledge and expertise, which may improve service delivery and client satisfaction. This human capital aspect, combined with the access to SS&C's advanced technology for automating processes, could result in margin improvements through reduced operational costs over time.

For DDH, the move allows for a focus on their core competencies while leveraging SS&C's technology, which could lead to an enhanced competitive position in the market. Investors should monitor the transition process closely, as smooth integration without service interruptions is critical to retaining client trust and maintaining revenue stability.

Technology Analyst

SS&C's role as a global administrator with a commitment to financial technology is a key element in this agreement. The financial sector's increasing reliance on technology for process automation and operational streamlining is a clear trend and SS&C's in-house technology likely played a significant role in securing the deal with DDH. The ability to automate unit registry and fund services could set a new industry standard, potentially influencing other companies to follow suit and adopt similar technologies.

For stakeholders, the implications are twofold: the potential for increased efficiency and accuracy in fund management and the need to stay abreast of technological advancements to remain competitive. The long-term success of this partnership will hinge on the effective integration of technology and the realization of anticipated efficiency gains.

DDH Graham outsources administration to SS&C

WINDSOR, Conn., Feb. 14, 2024 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced it has signed a long-term agreement with DDH Graham Limited (DDH) to deliver superannuation and funds management administration services. DDH Graham Group manages and administers over $7.8 billion in funds on behalf of 34 fund managers and superannuation funds in Australia.

Upon completion, DDH will leverage SS&C's skilled financial administration and technology resources on a sub-contracting basis to further expand its superannuation and managed funds business. SS&C will deliver member and investor administration, including unit registry and fund services, for DDH and their superannuation and managed fund clients. DDH will transition the delivery of the administration services to SS&C over the next few months.   

DDH Executive Chairman Ugo Di Girolamo welcomed the arrangement with SS&C, a global administrator with demonstrated commitment to the Australian financial administration sector. "While our DDH Money Market business remains unchanged and is not part of these arrangements, the opportunity to align with a superannuation and managed funds administration organization such as SS&C is a significant one. The ability to scale and gain access to leading financial technology will expand our range of opportunities to service customers in a changing industry," he said.  

As part of the agreement, approximately 70 team members in Brisbane will transfer over time from DDH to SS&C, ensuring DDH customers experience no service interruptions. The team will leverage SS&C's in-house technology to automate processes and streamline operations while continuing to provide top-notch service delivery to DDH's clients alongside SS&C's experts.   

"We are pleased to expand our relationship with DDH Graham and look forward to working closely with our new colleagues," said Nick Wright, Head of Global Investor & Distribution Solutions. "This agreement continues SS&C's growth story in Australia, where we see a lot of opportunities in our outsourcing business. We are committed to serving superannuation and managed funds clients at this stage of the industry's evolution and look forward to the opportunity to deliver the best technology and service to clients as our business grows." 

About DDH Graham

Established in 1981, DDH Graham offers a wide range of investment products and services including cash management accounts, a variety of managed funds as well as super and non-super administration capabilities. DDH Group currently manages and administers over $14 billion* in funds nationally, on behalf of financial intermediaries and other financial services partners.

About SS&C

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 20,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale and technology. Australia's financial services and superannuation industries have relied on SS&C's technology and services for more than 30 years.

SOURCE: SS&C

Additional information about SS&C (Nasdaq: SSNC) is available at www.ssctech.com.

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SOURCE SS&C

FAQ

What services will SS&C provide to DDH Graham Limited?

SS&C will provide superannuation and funds management administration services, including member and investor administration, unit registry, and fund services.

How much funds does DDH Graham Limited manage on behalf of fund managers and superannuation funds?

DDH Graham Limited manages over $7.8 billion in funds on behalf of 34 fund managers and superannuation funds in Australia.

How many team members will transfer from DDH to SS&C as part of the agreement?

Approximately 70 team members in Brisbane will transfer from DDH to SS&C over time.

What is the significance of the agreement between SS&C and DDH Graham Limited?

The agreement allows DDH to leverage SS&C's financial administration and technology resources to expand its superannuation and managed funds business.

Who is the Executive Chairman of DDH Graham Limited?

Ugo Di Girolamo is the Executive Chairman of DDH Graham Limited.