Empowering Global Wealth Administration: How PandaConnect Delivers Premier Investment Solutions and Unparalleled Client Commitment

PandaConnect is a global, full-scale investment administration solution that serves clients worldwide, managing diverse asset classes, including both bankable and non-bankable investments. PandaConnect ensure continuous system maintenance, data warehousing, data loads, and specialize in IT development and integration. PandaConnects Auditor's Assurance Reports, such as the ISAE 3402, type 2, showcase the dedication to high standards.

The company is dedicated to helping clients achieve the dual objectives of wealth preservation and growth. Founded over 24 years ago within one of Scandinavia's largest banks in an institutional setting, PandaConnect has since evolved into an independent entity, free from the influence of banks and investment managers. Today, the company offers families access to the best practices from the institutional world, enabling them to effectively monitor, preserve, and expand their wealth.

Henrik Wolff-Petersen, Director of PandaConnect, in an exclusive interview with CIO Bulletin, shared insights into how the company is dedicated to delivering maximum value for its clients while minimizing costs in Investment Administration.

Interview Highlights

Q. What is the story behind PandaConnect? How has the company grown over the years?

PandaConnect was established as a 'FinTech' division within Nordea Investment Management in 1997. In 2007 and 2015, the business was separated from Nordea and sold to my business partner and me. This transition marked our evolution into the fully independent company we are today.

Upon gaining independence, our primary objective was to create a new organizational structure, leading to the formation of PandaConnect Group. In 2015, we inaugurated our inaugural international office in Vilnius. Subsequently, we expanded into new industries, services, and countries, fostering collaborations with Custodian banks, Investment managers, and data suppliers.

Throughout our journey, we take pride in developing a comprehensive wealth management platform that covers all asset classes. This platform and our services empower our clients to manage their investments effortlessly and make well-informed decisions. Specifically designed to aid individuals and businesses in creating, managing, and protecting their wealth, our platform offers access to a diverse array of services and features.

Today, we operate globally, serving clients across four continents. We receive automatic data feeds from over 65 national and international banks daily. Most importantly, we have garnered the trust of more than 100 satisfied clients, with over 1,000 portfolios invested in various asset classes.

Q. How does PandaConnect overview a complete portfolio of both full-scale bankable and non-bankable investments?

At PandaConnect, we're dedicated to offering a comprehensive overview of both bankable and non-bankable investments. Through our platform, clients benefit from the expertise of professionals in IT, Back Office, and Middle Office, ensuring a multi-faceted approach to portfolio management. We believe in working closely with our clients, seamlessly integrating into their operations, and managing the daily tasks associated with investments. A key step in our process is collaborating with custodians to ensure smooth data transfer, whether transactions are electronic or manual. Beyond the data from custodians, we also collect market data and static data from independent sources to enrich our database and provide a holistic view. Once integrated into our systems, this data captures everything from trades and yields to corporate actions and prices. Upholding data integrity is paramount to us; hence, we engage in periodic internal reviews and controls, such as reconciling balances and cross-checking trades.

Within the investment landscape, alternative investments are a standard and crucial component. Our platform naturally incorporates and manages both traditional and alternative assets, allowing clients to effortlessly hold and track these investments within their portfolios. As part of our commitment to comprehensive portfolio overview, clients benefit from our tailored solutions that keep them informed about all segments, including alternative investments. With PandaConnect, every type of investment, whether conventional or alternative, receives equal focus and detailed attention.

Ultimately, our aim is to provide a thorough yet user-friendly view of portfolios, spanning the breadth of both traditional and alternative investments.

Q. How has PandaConnect innovated and diversified to work across multiple client types in the modern economy?

PandaConnect began its journey catering to institutional investors like pension schemes and assurance companies, entities known for their stringent demands regarding security and well-documented procedures. This solid foundation instilled in us a robust approach to managing investments with precision, safety, and transparency. Recognizing the disparity in the family office realm, where operations still frequently rely on spreadsheets, as well as among several endowments, we saw an opportunity. We innovated by transferring our institutional-grade qualities to these sectors, bridging the gap and offering a refined, secure, and methodical approach previously reserved for large institutions. Through this adaptation, PandaConnect has seamlessly diversified to serve a broader range of client types in today's modern economy.

Q. What are the various services offered by PandaConnect?

PandaConnect offers a comprehensive suite of services tailored to the modern investment landscape. For Investment Reporting, we provide consolidated reports, both standard and bespoke, alongside an online portfolio overview via our PandaCockpit^® available on the web and as an app. Our services further extend to Performance Measurement, Compliance Reporting, Fund Transparency, and in-depth Analysis of Investment Costs, among others.

Our Back Office services are robust, offering both manual and automated registration of transactions, full reconciliation with custodians, thorough controls, reviews, and complete record-keeping. Currently, we are connected to over 65 custodians globally. For Accounting, we provide a general ledger ready to be booked, along with detailed specifications. Our IT services stand out with secure system hosting, data storage, and top-tier IT security that aligns with banking standards. We ensure continuous system maintenance, data warehousing, data loads, and specialize in IT development and integration.

Our Auditor's Assurance Reports, such as the ISAE 3402, type 2, showcase our dedication to high standards.

Q. Can you briefly explain PandaConnect’s PandaCockpit and how does it create value for your clients?

PandaCockpit is a pivotal feature of PandaConnect's offerings, tailored to provide updated and comprehensive insights into the investment portfolios across legal entities, jurisdictions, managers, and even family members. It's available in two distinct formats: a detailed web version (PandaCockpit WEB) suitable for in-depth analysis, and a streamlined, aggregated version for mobile users (PandaCockpit APP), perfect for on-the-go insights.

The value of PandaCockpit lies in its ability to grant clients immediate access to their investment data. With the web version, clients can dive deep into their portfolios, analyzing trends, returns, and other vital metrics, enabling informed decision-making. The app version, on the other hand, offers a high-level view, ideal for quick checks and updates, ensuring clients remain connected to their investments anytime, anywhere. Together, these tools empower PandaConnect clients with the flexibility and clarity they need to effectively manage and monitor their assets.

Q. What are PandaConnect’s plans for the future?

PandaConnect is on a steady journey within the financial technology landscape. Our focus remains on enhancing our wealth management platform, leveraging modern technology to offer tools and solutions that are both efficient and user-friendly for our clients. While we serve clients on multiple continents, there's potential for thoughtful growth into new regions, ensuring more investors can benefit from our services. We're also exploring ways to expand our service offerings, aiming to align with the evolving needs of the investment community.

Recognizing the significance of sustainable finance, we are working to provide insights and tools that facilitate responsible investment decisions. Collaboration holds value for us; through close integration with banks and other financial institutions, we hope to deliver a more holistic experience.

Additionally, we're mindful of the importance of client education and support. As such, we're looking to expand our educational resources to further assist our users. At the heart of it all, PandaConnect aspires to offer valuable, innovative, and comprehensive services in the FinTech space.

About | Henrik Wolff-Petersen

Henrik Wolff-Petersen holds a Master of Science in Economics from Copenhagen University and boasts extensive experience in the financial sector. His career journey began in 1989 as a student, and he gradually climbed the ranks at Nordea Investment Management, eventually becoming the Chief Portfolio Manager. During his time at Nordea, he honed his skills in diverse areas such as investment, reporting, performance measurement, system development, and management.

In 1997, Henrik played a key role in establishing PandaConnect, a “FinTech” division within Nordea Investment Management. His involvement significantly contributed to the subsequent growth and success of the venture. The independent status of PandaConnect, achieved through its separation and sale from Nordea in 2007 and 2015, reflects Henrik’s personal achievements and dedication.

“Our focus remains on enhancing our wealth management platform, leveraging modern technology to offer tools and solutions that are both efficient and user-friendly for our clients.”

“Drawing on extensive experience and feedback from our clients, we confidently stand as one of the most comprehensive and complete systems in the industry, uniquely positioned to fulfill all aspects of investment administration and monitoring. Our services, fine-tuned through years of insights and direct client interactions, not only meet but anticipate the needs of our clients, ensuring a seamless, efficient, and proactive approach to investment management.”