First State Investments selects Euroclear to automate UK funds settlement

First State Investments will use the service for end-to-end automation of its UK investment funds from order placement, to settlement and asset servicing.

By Joe Parsons

First State Investments, the £151 billion UK asset manager, has chosen Euroclear’s CREST Investment Fund Service to automate settlement of its investment funds.

First State Investments will use the service for end-to-end automation of its UK investment funds from order placement, to settlement and asset servicing, giving them visibility of their settlement obligations and to manage cash flows more effectively.

“As well as improving operational efficiencies, Euroclear’s CREST automated settlement service will provide clients with an additional channel to access straight through processing,” said Terry Yodaiken, head of distribution business support and governance, First State Investments.

“This system will not only ensure that clients enjoy a better customer experience through a fully, automated, end-to-end settlement service but also reduce settlement risk for both subscribing and redeeming investors and fund investors.”

The service now boasts some of the UK’s largest asset managers and private banks, including Legal and General Investment Management (LGIM) and Arbuthnot Latham.

The funds industry has seen increased inflows into mutual, alternative and money market funds as well as ETFs, resulting in a need to remove operational burdens from the settlement process.

By automating the settlement process, clients would benefit from clearer visibility of their settlement obligations, helping them manage cash flows more effectively.

“The CREST Investment Fund Service has experienced significant momentum due a market need for automation efficiencies. Our service offering reduces operational and counterparty risks, improves liquidity management and ensures certainty of settlement,” added Stephan Pouyat, global head of capital markets and funds, Euroclear.

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