Calastone, the independent transaction network for the managed funds industry, today announced that fund provider Investors Mutual Limited (IML) had commenced trading its funds via Calastone.
Calastone, which launched in Australia in January, enables fund providers, distributors, platforms, administrators, custodians and hedge funds to connect electronically to each other, replacing the current system of faxing orders and redemptions which still holds sway in Australia.
Joint founder of Calastone, Kevin Lee, said the rapid uptake of Calastone by the local industry was testament to the benefits the system offers.
“Calastone is about reducing cost, and reducing risk,” he said. “The technology allows the funds industry to transact with one another quickly, easily and transparently and brings Australia in line with world standards.”
IML General Manager, Graham Hook, said IML had signed up to Calastone to offer a better service to its clients. “Calastone’s technology will allow IML funds to be traded much more efficiently,” he said. “We’re enthusiastic about the benefits automation offers the funds industry”.
Mr Lee said the Australian managed fund industry had been receptive to Calastone and the benefits it offered fund participants.
“Calastone has been the standard way in which funds are traded in the UK and Europe for some years now,” he said. “For fund providers, it simplifies their distribution mechanisms and reduces costs and risks, ultimately yielding benefits which can be passed on to clients. I fully expect that the Australian industry will quickly take advantage of the opportunities automation brings, following leaders like IML.”