In May 2019, Clearstream announced that it would acquire Ausmaq Limited, a Sydney-based specialist managed funds services business. The acquisition was completed in July. Clearstream is an international post-trade services provider and part of the German stock exchange provider Deutsche Börse Group.
As of 1 June 2020, Ausmaq has now been re-named as Clearstream Australia. Via its local entity, Clearstream provides custody and administration services in Australia for managed funds worth around €37 billion in assets under custody and term deposits; it is also a leading provider of fund data services in Australia.
For Clearstream Australia, as it moves into new offices on Sydney’s Bligh Street, this also represents a time of new direction and opportunity.
Linking globally
In driving the acquisition, international players active in the Australian market have approached Clearstream to provide the same infrastructure service in Australia that it provides internationally, and to handle the link from the Australian funds market back into global markets.
Although these fund flows in Australia are heavily concentrated in domestic funds, there are signals that investors are eager to welcome wider product choice and opportunities for investment diversification.
Looking ahead
In Q4 this year, Clearstream Australia will be connected to Clearstream’s fully automated global fund processing platform Vestima. This will facilitate access to the local market for international investors, enhancing local Australian domestic flows. Clearstream also supports Australian custodian banks, wrap platforms and wealth managers in automating parts of their fund services, allowing them to benefit from increased efficiency and international standards.
From Q4 2020 onwards, clients who sign up to Clearstream’s global Vestima platform will have access to around 190,000 investment funds supported on Vestima, including a range of alternative investments and internationally-listed managed funds.
Philippe Seyll, CEO of Clearstream Banking S.A. and Head of Clearstream’s Investment Fund Services, comments: “With Clearstream Australia, we are significantly expanding our international network for investment fund services. The integration lays further groundwork for the extension of our Vestima services to the Australian markets, connecting international and Australian issuers and investors. With the planned link to Vestima, Australian investors will have access to more than 190,000 investment funds domiciled in close to 50 jurisdictions.”
Ravi Subramaniam, CEO of Clearstream Australia Ltd., adds: “We see growing interest in cross-border investments in Australia. Connecting the Australian market with other international markets, Clearstream Australia will support our clients with local expertise and knowledge of the domestic market, embedded in an international network for investment fund services.”
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Author/Company: Clearstream Australia Limited, Ravi Subramaniam, CEO of Clearstream Australia Ltd.
