Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a657984

Aberdeen joins M&G and 19 others in revolutionary Crest deal

by Emma Dunkley on Feb 11, 2013 at 11:09

Aberdeen joins M&G and 19 others in revolutionary Crest deal

Aberdeen has joined M&G in confirming it will use Euroclear's Crest system, with 19 other fund groups administered by the IFDS set to follow in a move which will significantly bring down costs for distributors and fund groups.

Wealth Manager last week revealed that M&G will be the first group to settle on Crest, which is scheduled to start in March. This paves the way for fund groups using the third party administrator IFDS Group, including Aberdeen and Invesco Perpetual, to follow suit.  

The 21 fund managers represent around 80% of the entire IFDS community, with the IFDS Group being the largest third party administrator to the UK funds industry.

Aberdeen Asset Management confirmed it will use Crest, and will likely go live in the second quarter.

Andy Rudd, product manager at Euroclear UK and Ireland, told Wealth Manager: 'We are delighted this important initiative is being supported by a major fund group M&G, in conjunction with their services provider IFDS, and we believe that enabling them to be settled in the same way as equities and bonds will significantly broaden their appeal to investors that until now, preferred investing directly in those assets instead of using funds.'

He added: ‘This should bring distribution costs down substantially, as well as fund manager costs.’

Rudd said one of the largest parts of a platform’s cost is the maintenance of keeping records of what their holdings are, who owns what, the number of subscriptions and redemptions, among many other settlement factors.

Making the funds available on Crest means this information is accessible in real time, meaning reconciliation information is available at the press of a button, via a centralised system.

‘This means platforms can more easily work out what their balance on a given fund is, view in real time exactly what is going on, and this will bring down costs for platforms in the UK,’ said Rudd.

He said the move will bring clarity to both fund groups and administrators, in terms of efficiently providing information such as who has paid and what corporate actions have been processed, for example.

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Sponsored Video: Barings on investing in Frontier Markets


From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet