Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Old Mutual, F&C & Liontrust join Euroclear settlement system

Old Mutual, F&C & Liontrust join Euroclear settlement system

F&C Asset ManagementLiontrust and Old Mutual Global Investors have become the latest asset managers to join Euroclear’s Crest electronic settlement system.

Earlier this year Wealth Manager revealed that other leading fund houses, including M&G and Aberdeen, had signed up to Crest in a move expected to cut the costs and risks of manual processing.

‘The manual processing methods employed are currently not as mature as for other asset classes like equities and fixed income,’ a Euroclear spokesperson said.

The Treasury has estimated that up to £290 million could be saved by the UK’s fund industry each year through automated transaction processing and promoting real-time reconciliation.

‘We expect to see real improvement in our transaction settlement, cash and fund unit balance reconciliations, re-registrations and portfolio transfers as a result of the electronic and automated features of Euroclear UK & Ireland’s investment fund service,’ commented Gary O’Brien, head of client services at Old Mutual Global Investors.

‘While having an automated service for order routing is important, moving to full automation across the entire transaction life cycle makes good business sense,’ he added.

Jeff Digweed, head of transfer agency at Liontrust, added that the system changes would be ‘invisible’ to investors who settled through Euroclear. ‘They will see the benefits quickly as they will experience a more efficient settlement process for their fund subscriptions and redemptions,’ he said.

There are currently 22 fund groups working with IFDS Group, a third-party administrator, of which eight – including the latest three additions – have joined Euroclear. Euroclear disclosed that a further two were expected to become members by the end of September, and the remainder by the end of the year.

‘We are seeing growing momentum in the UK fund community to reduce the risks and costs associated with fund transaction processing,’ observed John Trundle, chief executive officer of Euroclear UK & Ireland.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Big City Bright Future

Big City Bright Future

Big City Bright Future, the brainchild of BlackRock, is a three-week work experience programme for school leavers looking to forge a career in the City.

Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Read More
Your Business: Cover Star Club

Profile: change is the only constant for Quilter Cheviot

Profile: change is the only constant for Quilter Cheviot

This is not the first time we have profiled David Miller, but at the time of his previous appearance his company looked very different.

Wealth Manager on Twitter