Euroclear, with the support of leading fund promoters and transfer agents, is introducing an investment fund ‘quality label’ programme to accelerate automation and STP in fund-transaction processing. Beginning in April 2007, transactions in funds carrying the FundSettle™ Premier quality label will cost significantly less to process, while receiving superior service levels.
To encourage more fund distributors to fully automate their back-office operations, it will cost up to 25% less to process fund transactions with the FundSettle Premier label. Fund distributors will also profit from:- fast-track settlement due to greater automation and later input deadlines;
- earlier notification and receipt of corporate-action proceeds, such as dividends; and
- reduced operating risks.
In fact, FundSettle Premier benefits all fund promoters, transfer agents and fund distributors. As a ‘win-win-win’ solution, it delivers faster, automated services, increased efficiency, a low-risk environment and reduced overall costs. The decision and investment that fund promoters are making to differentiate their funds with the FundSettle Premier label is unprecedented.
Ivan Nicora, Director of Investment Fund Product Management at Euroclear, said: “We are delighted to work closely with the fund-promoter and transferagent community in creating FundSettle Premier as a catalyst to achieve greater processing efficiency in the funds industry. We have high expectations that funds carrying the FundSettle Premier label will create a new standard in our industry.”
The FundSettle User Group, comprised of 17 major fund-market participants, expresses strong support for FundSettle Premier as a means to drive up levels of automation, standardisation and savings in fund-transaction processing. The first fund promoters that have agreed to use the FundSettle Premier label on their funds include: Franklin Templeton Investments, INVESCO, JPMorgan Asset Management, Pictet & Cie. (Europe) S.A. and Schroder Fund Services Luxembourg. The first transfer agents supporting this initiative include JPMorgan Bank and RBC Dexia Investor Services.
Gary Janaway, Head of Operations, Schroder Fund Services Luxembourg, said: “Euroclear’s strategic user forum, with experts representing organisations across Europe involved in the investment-fund industry, has been the focal point in directing the development of FundSettle’s services over the last three years. The launch of the Fundsettle Premier label introduces new services with higher standards and is the first in a series of initiatives that the FundSettle User Group is considering to reduce the cost of trading investment funds whilst increasing productivity across the industry. I believe this is a bold step by Euroclear in their drive to address the issues of bringing standardisation, automation and efficiency to the processing and servicing of investment funds across Europe.”
Jon Griffin, JPMorgan Asset Management Country Head Luxembourg, said: “As one of the highest volume cross-border fund promoters on the current FundSettle platform, JPMorgan Asset Management is pleased to be a participant in the FundSettle Premier initiative. This innovation is at the heart of promoting greater levels of automation and market efficiency for mutual-fund trading in Europe.”
