Calastone: The Tipping Point

basicgratisMechanics

Nov 5, 2013 (3 years and 9 months ago)

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Sydney, 5
t h

Feb; Melbourne 7
t h

Feb 2013

Calastone
: The Tipping Point

The Tipping Point is that magic moment when an idea, trend or social behaviour crosses
a threshold, tips, and
spreads like wildfire” Malcolm Gladwell

You heard it there...

Platforms are sayi ng ...
“We manage shel f space on the pl atform and soon we wi l l be chargi ng for
where Fund manager doesn’t have automati on”


Fund Managers are sayi ng
...“Do you want to spend yo
ur ti me i n compl i ance meeti ngs tal ki ng
about errors or do you want to concentrate on greater di stri buti on of your funds”


Everyone is sayi ng
...
“I l ooked for a catch but couldn’t fi nd one”; “Cal astone has yet to l ose a
cl i ent or a message”


Investment Tren
ds

At the Sydney event, Recep Peker from Investment Trends provided detail regarding investor
and planner
interactions. We are unable to provide the
ful
l

p
resentation, but feel free to contact them directly

for further
information
.
www.investmenttrends.com.au



Their research
highlighted that some of the key attributes that drive financial planners’ satisfaction with their platform
were:



Administrative accuracy



Turnaround times

on applications



Turnaround
times on redemptions


Panel

Discussion

Questions and answers for the panel members across both events:

Why Calastone?



“Because
Calastone does
not require a specific format: y
ou are able to use existing infrastructure
.





“And a
s a global translation network
, the opportunity to increase automation both in the Australian and
offshore offices
i
s

made

possible
,

and allows increased global distribution opportunities.


Will Calastone replace other market
automation
options?
What about SWIFT?



“No, Calastone advocat
es choice”



“Calastone supports SWIFT and ISO standard messages. If a Fund manager has SWIFT, Calastone can
assist by providing translation and hence connectivity to those parties who do not have SWIFT.” “And for
those that choose not to invest in the SWIFT

infrastructure for managed funds, Calastone can provide
SWIFT as an alternative using a branch code of Calastone’s BIC or host the Client’s SWIFT BIC.”



“The cost of each automation path varies. The cost for SWIFT infrastructure was a barrier to entry in s
ome
business cases,
but

the Calastone model has removed that concern.”

What information can be provided to make the business case

for a Unit registry

easier?




Automation in managed fund trading will always increase efficiency and decrease risk.





On Calas
tone, each order
consists of

an

accept or reject message
,

and an automated confirmation note,
eliminating the risk
of delays and manual entry
experienced
using

fax. This functionality becomes a selling
point for investors as it increases the speed
and tran
sparency
of turnaround.




“In addition

a
s a utility, the Fund Manager only pays for what they use


How does a F
und

M
ana
g
e
r look at
distribution options in the retail space
?



“Fund Managers are always willing to look at different channels of distribution. Thi
s cannot come at the cost
of damaging relationships with platforms or exposure to high transaction costs
.





“There are some concerns too that
SIV’s
, which

offer a large opportunity to F
und managers
, would not be
available
to

players
who register their
funds

the retail market.



A few more quotes from the panel…

“Easiest vendor implementation we have ever had”

“Allows choice”

“We always want to be on the front foot”

“Everyone’s a winner
-

whether you’re the Custodian, Platform, Fund Manager or
Registry”


We are grateful to have had the below respected market participants as our panel members:

Sydney

Facilitator:

Mark Reilly, Chief Operating Officer, Ausbil Dexia Limited;
Pa
nel:

Gil Orski, Chief Operating
Officer, Aberdeen Asset Management; Robert Brown
-

HS
BC Bank Australia Limited, Head of Client Management;
Doug Bryden
-

Head of Operations Fidelity Investment Management Australia


Melbourne

Facilitator:

Dañelle Bereau, Senior Manager >Intermediary Services, Computershare Investor Services;
Panel:

Alistair D
ensley, General Manager


Operations,

netwealth Investments Limited; Richard Linnegan, Executive
Director, Goldman Sachs; Adam Donohue, Senior Manager Unit Registry, RBC Investor Services


Calastone Key Facts

Background



Calastone started trading in 2008 as

the UK’s only Independent Transaction Network
, p
roviding message
translation and order routing services for the Funds Management Industry.





The business has expanded globally and is now serving 370 client
s trading over 7,500 funds in 17

domiciles



Offic
es in the UK, Luxembourg, Hong
Kong, Taiwan and Australia.




The technology infrastructure is currently carrying over 1.3 million messages with a combined trading value
of over AUD $20Bn every month.

What we do



Senders can send
trade order
messages in an
y format they choose



Receivers can receive
trade order
messages in any format they choose



Calastone takes care of the message translation & delivery



Implementation (Client take
-
on
starts at approx
6
-
8 weeks)



Neither sender nor recei
ver need to purchase t
echnology

Roadmap



Managed Funds



Reconciliations, statement of holdings, transactions



Re
-
registration, wrapped, unwrapped, nominee to nominee and own name



Managed fund settlement instruction matching and net settlement service



Corporate event information

(distribution and tax)



SuperStream



Rollovers (in and out)



Contributions



SMSF



Connectivity to software vendors


Contact us

AMP Tower,
Level 34,
50 Bridge Street, Sydney 2000

T.
Shannon: 0415 690 009 or Sarah: 0406 767 668


E.

shannon.sweeney@calastone.com

or

sarah.hinchliffe@calastone.com



© Calastone Limited. All rights reserved. Calastone Limited is a company registered in England and Wales with co
mpany number
6298923. Principal Address: King’s House, 6th Floor, 36
-
37 King Street, London, EC2V 8BB Calastone Limited is authorised and
regulated by the Financial Services Authority and is entered on the

FSA Register

under the Firm Reference Number 487428.





CALASTONE COUNTERPARTIES

as of Feb 2013


O
RDER SENDERS



Macquarie
-

Live



Netwealth
-

Live



RBC custody
-

Live



HSBC custody


Live

this week



JP Morgan custody


Live



IOOF (estimated go live Q1/2)



BNP (in project. Est

go live
March
)



Two large platforms under NDA

(announced at event)



FUND MANAGERS THAT ARE LIVE/SIGNED



Schroders



Aberdeen



IML



Goldman Sachs



90

West



Allan Gray Australia



Alpha Fund Managers (Infocus)



Alpha Structured Investments (Societe
Generale)



Apostle



Armytage Private Limited



AV Absolute Return Fund (Optimal)



AV Chindia (Five Oceans)



AXA Rosenberg



BNP Paribas Investment Partners (‘BNP
PIP’) (Arnhem)



BNP PIP (BNP Paribas Asset
Management)



BNP PIP (Fauchier Partners)



BNP PIP (Fisher Francis Trees & Watts)



BNP PIP (Impax Asset Management)



BNY Mellon (Mellon Capital)



BNY Mellon (Standish Asset Man
agement)



Brookvine (Fermat)



Cohen and Steers



Copper Rock Capital Partners



Donaldson Burston (THS Partners)



Eaton Vance



EQT 1888



GAM



Intrinsic Value Investments (Value Trac)



Itau Unibanco Asset Management



Janus Capital Management



K2 Advisors



LaSalle Asse
t Management (Direct
Property)



LaSalle Asset Management (REIT)



Lime Street Capital



Lincoln Australia





ORDER
RECEI
VERS



RBC
-

Live



NAB (Asset Servicing)


Live



Blackrock (self administered)
-

Live



State Street


Estimated go live Q2



Link


Scheduled go live May



Mainstream BPO


Estimated go live
Q1/Q2



BNP


Estimated go live March



Computers
hare


Estimated go live TBC



JP Morgan


Estimated go live TBC





Martin Currie



Massachusetts Financial Services



MCG Asset Management



Neuberger Be
rman



Orbis Investment Management



PanAgora



Partners Group



PIMCO



Putnam Investment Management



SG Hiscock & Co



Shakespeare Property Group



Somerset



Blackrock (Barclays)



Spectrum Asset Management



Standard Life Investments



Swita Investment Management



T. Rowe
Price



Taurus Funds Management



Tibra Investment Management



Ventura/All Stars



Vontobel



UBS Global Asset Management



INVESCO Australia / Concord Capital



Ausbil Dexia



MAN Investments Ltd



All Star Funds management



Lodestar Capital Partners



Antares / Fairv
iew Ltd



Bell Asset Management



CCI Investment Management



Contango Asset Management



Cooper Investors



Certitude Global Investments



Mercer



MLC



Northward Capital



OC Funds Management



Ventura Asset Management



UBS