EFAMA, the voice of the European investment management industry, in collaboration with SWIFT, has published a new report on the automation and standardisation rates of fund orders received by transfer agents (TAs) in the cross-border fund centres of Luxembourg and Ireland in 2019. The report highlights the progress made in the increased automation of fund orders and the use of ISO standards.
Twenty-nine TAs from across Ireland and Luxembourg participated in the survey covering 80 per cent of the Irish market and 75 per cent of the Luxembourg market.
According to the report, the total volume of orders processed by the 29 survey participants reached 42.2 million last year, compared to 38 million in 2018.
The total automation rate of orders of cross-border funds increased to 91.8 per cent in Q4 2019, from 90.4 per cent in Q4 2018. The use of ISO messaging standards rose from 58 per cent to 62.3 per cent during the same period, while the use of manual processes dropped from 9.6 per cent to 8.2 per cent.
The total automation rate of orders processed by Luxembourg TAs reached 90.2 per cent in Q4 2019, compared to 89 per cent in Q4 2018. The ISO automation rate increased from 72.2 per cent in Q4 2018 to 76.6 per cent in Q4 2019, while the use of manual orders dropped from 11 per cent to 9.8 per cent during the same period.
The total automation rate of orders processed by Irish TAs increased to 94.6 per cent in Q4 2019, from 92.8 per cent in Q4 2018. The ISO automation rate increased from 34.7 per cent to 36.6 per cent, whereas the use of manual processes dropped from 7.2 per cent to 5.4 per cent during the same period.
Tanguy van de Werve, Director General of EFAMA, says: “The continuing increase in the automation rate of cross-border funds orders illustrates the efforts by European fund managers to reduce operational risks, increase efficiencies and generate cost savings. These efforts enhance our industry’s competitiveness and, in turn, the satisfaction of investors.”
Janice E Chapman, Manager, Investment Funds, Standards, SWIFT, says: “It is very pleasing to see that overall, manual and proprietary orders both continue to show a downward trend and ISO 20022 automated orders are on an upward trend. This is nicely backed up by an increase of funds volumes on SWIFT for orders as well as an increase for the other fund business processes supported by ISO 20022 messaging, such as fund portfolio and asset transfers.”