Three big UK investment funds have chosen to settle their transactions with Euroclear UK & Ireland (EUI). Aberdeen Asset Management, Artemis Fund Managers and Schroders Investment Management are joining to smooth their transaction workflows as much as possible and introduce straight through processing (STP) efficiency, having already signed up to EUI for automated fund order routing.
According to Alan Hawthorn, global head of investor services at Aberdeen, retail investors are looking to save, which is a good thing - and in parallel they are increasingly expecting transparency around product, process and costs. “We see the simplicity of Euroclear UK & Ireland’s fund processing system as an extension of our business model for investors in the UK,” he said. “Automated settlement for bonds and equities has been commonplace at EUI for many years, so there is no reason investment funds shouldn’t follow.”
Alex Murton, head of transfer agency UK at Schroders, is in agreement, adding: “The ease with which transfers, corporate action processing and reconciliations, can now take place should make mutual fund processing as simple as other asset classes in the UK.”