Ivan Nicora, director and head of investment fund product management at the firm, explained that the UK’s fund settlement system was currently very much manual. While the UK’s equity and bond transaction services have been automated, there is still some way to go with funds.
Euroclear’s FundSettle product exists in the UK for bond and equity transactions, but is not yet available for UK funds transactions.
No method is madness
Seventy-three per cent of investment management companies who responded to a recent survey confessed that they do not use any cost reduction methodology, despite claiming that cost management has gained increased strategic importance as a result of the financial crisis.
The global survey by Simcorp StrategyLab, an independent research house sponsored by technology vendor, Simcorp, revealed that 41 per cent of the asset management industry is operating with cost rates at or above 99 per cent and noted that top financial performers in the industry tend to pursue structured cost reduction methodologies such as Business Process Improvement or Lean Six Sigma.
