Calastone managing director and head of Australia Shannon Bernasconi said more fund managers are moving towards automated communications, with over $10 billion of Australian investors’ assets having already been automated.
“The growth has been steady, and we have another 20 participants in either testing or advanced discussions to come online this year,” Ms Bernasconi said.
“This is a significant reduction in risk of error in the handling of investor funds,” she said. “A volume of 1,000 orders per day will, over a year, remove around one million faxes sent and printed or scanned, so there’s a side benefit for the environment as well.”
Schroders chief operating officer for the Asia Pacific, Murray Coble, said Calastone enables its retail platform clients and superannuation investors to significantly reduce processing costs and operational risk.
“It also provides transparency through greater visibility of the order flow and in a timely manner,” Mr Coble said.
Calastone said users of the automated communication system see a reduction in time taken to have accurate confirmed trade data exchanged between sell and buy sides for up to a couple of days to a couple of minutes.
Calastone launched in Australia in November 2011 with Macquarie Wrap as the first platform and Blackrock, Aberdeen Asset Management and Schroders as the first fund managers.
Ms Bernasconi will be speaking at a panel session at the 14th annual Wraps, Platforms & Masterfunds conference, which kicks off in the Hunter Valley this evening. For more information, visit www.masterfundsconference.com.au.
