DWS To Use Vestima+ Mutual Fund Order Routing Service From Clearstream

DWS Investment, the largest German mutual fund manager, has subscribed to the Vestima+ order routing service developed by Clearstream
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DWS Investment, the largest German mutual fund manager, has subscribed to the Vestima+ order routing service developed by Clearstream. It enables the Luxembourg-based ICSD to enter the giant domestic mutual fund market of its German parent – Deutsche Borse – for the first time.

“We are particularly pleased to welcome DWS, the number one fund provider in Germany as our first Vestima+ fund provider in the German market,” says Philippe Seyll, the former Bank of New York executive who is now head of investment fund services at Clearstream. “Germany is one of the biggest markets for investment funds in Europe and we strongly believe it needs the same level of automation, security in settlement and traceability that other securities markets enjoy. Vestima+ flexibility will help DWS to reach that goal and maximise the benefits.”

DWS Investment claims a market share of 24 % in Germany, making it easily the largest mutual fund manager in the country. It has Euros 150 billion under management, making DWS Group one of the largest mutual fund companies in Europe as well.

Vestima+ is an automated funds order routing service that does not require users to settle trades via Clearstream or hold assets in custody at the Luxembourg-based ICSD. It aims to enable fund distributors and promoters in the principal domestic markets of western Europe to make their own settlement and custody arrangements, while routing their orders to fund managers and their transfer agents (TAs) using an internet-based workstation or SWIFT messages.

DWS will still use Investro, the German domestic mutual fund order routing system, for German clients buying German funds. The company will use Vestima+ for non-German clients buying or selling German funds, and for German and non-German clients buying or selling funds domiciled in Luxembourg.

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