Legal and General Investment Management (LGIM) has chosen Euroclear’s CREST investment fund service to automate the settlement of its UK fund range.
LGIM will be able to use the CREST investment fund services for end-to-end automation of order placement, settlement and asset servicing.
“We are committed to providing clients with a simple, reliable and fully automated solution for fund order routing and settlement,” said Stephan Pouyat, global head of capital markets and funds, Euroclear.
“The resulting operational efficiencies reduce risk and save costs, helping with the transition of the UK fund market to a true delivery versus payment model.”
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.
“We are pleased to create greater efficiencies for our clients through the implementation of a fully-automated settlement system that also further improves their overall service experience with LGIM,” added Honor Solomon, head of retail, EMEA distribution, LGIM.
Euroclear is gaining momentum with its automated investment fund service in the UK, after Arbuthnot Latham, a London-based £1 billion private bank and wealth manager, went live on the platform in June.