Clearstream, the international central securities depository part of Deutsche Borse Group, has launched VestimaLink, a new service designed to help Asian based fund distributors deal in European investment funds more efficiently.
"Asian investors are very active in European investment funds as a way to diversify their portfolio," says Philippe Seyll, head of investment funds services at Clearstream.
However, due to the lack of standardisation and centralisation in the European funds industry infrastructure, Asian fund distributors serving this demand must connect to a large number of counterparties in Europe because each operate differently, Seyll says.
Clearstream's VestimaLink aims to address these issues in Europe with its centralised infrastructure.
With the VestimaLink processing service, distributors have one single access to place their fund orders, using one single communication channel. Standardised processes ensure instructions -- whether subscriptions or redemptions -- are supported throughout their entire life cycle from order input until final execution. Clearstream says this significantly reduces risks and increases efficiencies in fund processing.
Along with the centralisation and standardisation of order processing, distributors are able to consolidate their holdings into one single account through the VestimaLink holding administration service. Their holdings in the various funds are constantly reconciled with the positions in the register of the transfer agent.
Other processes such as dividend receipts are significantly simplified, says Clearstream. VestimaLink tracks and executes all administrative actions such as fund merger or liquidation and it covers the 30 fund houses in Europe.
Clearstream's operations based in Europe will handle the tracking of outstanding obligations from the fund side, such as open redemption payments or outstanding dividend payments.