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Industry automation rates for cross-border fund orders remain stable at nearly 91 per cent

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Industry automation rates for cross-border fund orders remain stable at nearly 91 per centEFAMA, the voice of the European investment management industry, in collaboration with SWIFT, has published a new report on the evolution of automation and standardisation rates of fund orders received by transfer agents (TAs) in the cross-border fund centres of Luxembourg and Ireland – during the first half of 2019.

The report highlights the progress made towards the increased automation of the amount of fund orders, and the use of ISO standards. Twenty-eight TAs from Ireland and Luxembourg participated in this survey.

 

The key findings of the report include:

 

• The total order volume of cross-border funds increased by 6.3 per cent to 19.9 million orders in the first half of 2019, from 18.7 million orders in the second half of 2018.

 

•. The total automation rate of processed orders of cross-border funds remained stable at 90.6 per cent in the first half of 2019. The use of ISO messaging standards rose from 58 per cent in Q4 2018 to 62.3 per cent in Q2 2019, while the use of proprietary file transfer protocols (ftp) decreased to 28.3 per cent in Q2 2019, compared to 32.4 per cent in Q4 2018.

 

• The total automation rate of orders processed by Luxembourg TAs remained stable 89.1 per cent. The ISO automation rate increased from 72.2 per cent in Q4 2018 to 73.7 per cent in Q2 2019, while the use of proprietary Fund Transfer Pricing (FTP) dropped from 16.8 per cent to 15.4 per cent during the same period.

 

• The total automation rate of orders processed by Irish TAs increased from 92.8 per cent in Q4 2018 to 93.5 per cent in Q2 2019. The ISO automation rate increased from 34.7 per cent to 40.4 per cent during the same period, whereas the use of proprietary FTP went down from 58.1 per cent to 53.1 per cent.

 

Tanguy van de Werve, Director General of EFAMA, says: “The high volume of orders of cross-border funds in the first half of 2019 confirms the strong presence of UCITS and alternative investment funds (AIFs) in the global savings marketplace. The sustained progress in the automation of business processes also highlights the vitality of European fund managers and their determination to keep operational costs under control to better serve the interests of savers.”

 

Janice E Chapman, Manager, Investment Funds, Standards, SWIFT, adds: “In line with the increased volume of fund orders reported across the Luxembourg and Ireland transfer agents and the increased adoption of ISO 20022 messaging standards, we see a welcome increase in funds order volumes on SWIFT, which again ratifies the general trend of the automation of the funds business.”

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