The solution, powered by XSP, helps reduce operational risk by efficiently handling the growing volume and complexity of corporate action events
DST Global Solutions, a market-leading provider of software technology and services to the investment management industry, today announced the launch of its HiPortfolio® corporate actions automation solution, powered by XSP. This solution is immediately available as a module for investment management organisations globally. It was showcased in August at Mission 2012, the Financial Services Council’s annual conference, held on the Gold Coast of Australia.
Currently, investment managers and asset servicing firms are renewing interest in corporate actions processing. Given the growing volume and complexity of corporate action events, it is increasingly difficult for these financial institutions to tackle the issues of operational risk and operational losses associated with the challenges of processing corporate actions manually. HiPortfolio’s corporate actions automation solution will help reduce operational losses by minimising errors, and providing timely and accurate validated announcement data to the front office and other parts of the business. In addition, it will deliver improved visibility and control across the lifecycle of the event, from the initial announcement through to the necessary accounting adjustments. By leveraging XSP’s capabilities, this corporate actions automation solution will also provide a single integrated, workflow driven corporate actions processing capability. Its functionality will extend across data cleansing, notification and response processing through to investment accounting updates of entitlements.
The issues associated with manually processing corporate actions are also well documented in recent industry research by CEB TowerGroup, and by industry associations and regulators such as the Australian Securities & Investments Commission. Globally, firms that are still reliant on processing corporate actions manually will need to mitigate the risk of loss due to missing an event. Automating corporate actions workflow will help these firms reduce direct back-office costs from processing failures and facilitate the provision of more robust reporting for investment managers.
CEB TowerGroup research director Gert Raeves commented, “The alliance of DST Global Solutions with XSP is a great illustration of the need to implement an end-to-end automation strategy. Combining their system of record with a specialised corporate actions workflow solution will help DST Global Solutions’ clients reduce the risk of manual processing and prepare them for future industry changes.”
Geoff Harries, Global head of Asset Servicing at DST Global Solutions said, “This solution brings together industry best practice for corporate actions processing to deliver a true end-to-end corporate actions processing and investment accounting solution. It will benefit our clients by providing a centralised announcement capture capability and improved client service through increased timeliness and quality of notifications.”