The European Fund and Asset Management Association (EFAMA) has published a new report in cooperation with SWIFT 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 in 2016. The report is an on-going campaign by EFAMA and SWIFT to highlight the advancement of automation and standardisation rates of orders of cross-border funds. 29 TAs from Ireland and Luxembourg participated in this survey.
The report highlights include:
- The total volume processed by the 29 survey participants reached 34 million orders last year.
- The total automation rate of processed orders of cross-border funds reached 86.7% in the last quarter of 2016, which represents an increase of 1.3 percentage points (p.p.) compared to the fourth quarter of 2015. The use of ISO messaging standards rose by 2.2 p.p. to 53.4%, while the use of manual processes dropped to 13.3% (-1.3 p.p.) in the same time period.
- The total automation rate of orders processed by Luxembourg TAs reached 84.4% in the last quarter of 2016 compared to 82.9% in the last quarter of 2015. The ISO automation rate increased from 65% in Q4 2015 to 68.3% in Q4 2016, while the use of proprietary ftp decreased from 17.9% in Q4 2015 to 16.1% in Q4 2016.
- The total automation rate of orders processed by Irish TAs increased to 90.6% in the fourth quarter of 2016, from 89.7% in the fourth quarter of 2015. The ISO automation rate increased by 0.9 p.p. to 27.8%, whereas the adoption of proprietary formats remained at 62.8%.
Peter De Proft, EFAMA Director General, notes: “Year after year, the cross-border fund industry is getting closer to their goal of automatically process at least 90% of fund orders. This means that faxes and calls are used less and less to place fund orders. This is good news because a greater level of automation raises the quality and efficiency in investor services, and reduces operational costs”.
Fabian Vandenreydt, Global Head of Securities, Innotribe and the SWIFT Institute, SWIFT, adds: “Despite a decline in numbers of orders received by cross-border transfer agents, we have seen in increase in automation rate. The industry clearly continues to focus on driving automation and efficiency, resulting in a decline in manual orders to the benefit of ISO automation. In addition, it is encouraging to see that when it comes to setting up new links, the industry confirms that ISO standards remain the most favoured and efficient automation option”.