Treasury Management Internation Logo

Industry automation rates for cross-border fund orders rise to nearly 87%


Brussels – The European Fund and Asset Management Association (EFAMA), in cooperation with SWIFT, published a new report about the evolution of automation and standardisation rates of fund orders received by transfer agents (TAs) in the cross-border fund distribution centres of Luxembourg and Ireland during the first half of 2017. Twenty-eight TAs from Ireland and Luxembourg participated in the survey.

The Mid-year report combines the Luxembourg and Ireland data into one single cross-border fund processing report, providing statistical evidence on the advancement of automation and standardisation rates of cross-border fund orders. This report also provides data on standardisation levels of fund orders in Italy.

Report highlights include:

  • The total order volume of cross-border funds increased by 13.3% to 19.5 million orders in the first half of 2017, from 17.2 million orders in the second half of 2016.
  • The total automation rate of processed orders of cross-border funds reached 86.6% in the second quarter of 2017. The use of ISO messaging standards increased from 53.4% in Q4 2016 to 54.2% in Q2 2017, while the use of manual processes remains stable at 13.4% in Q2 2017.
  • The total automation rate of orders processed by Luxembourg TAs reached 84% in the second quarter of 2017 compared to 84.4% in the last quarter of 2016. The ISO automation rate increased from 68.3% in Q4 2016 to 69.4% in Q2 2017, while the use of proprietary ftp decreased to 14.7% in Q2 2017 compared to 16.1% in Q4 2016.
  • The total automation rate of orders processed by Irish TAs reached 90.6% in the second quarter of 2017. The use of ISO messaging went up to 30.3% in Q2 2017 compared to 27.8% in Q4 2016.

Peter De Proft, EFAMA Director General, notes: “The report confirms that 2017 will be a record year in terms of net sales of investment funds. The success of both UCITS and AIFs reflects the investors’ interest in these products and the ability of fund managers to improve their competitiveness, notably by eliminating manual processes, which are costly and subject to operational risks. Looking forward, the European Commission’s ambition to tackling remaining barriers to the cross-border distribution of funds will contribute to further support investor demand and make fund processing standardization even more important.”

Tanja Van Sterthem, Funds Market Manager, SWIFT, adds: “The first EFAMA-SWIFT Standardization report was published in 2009. Back then, the funds industry jointly decided to go for an objective to reach 80% automation of cross-border fund orders. Today, with nearly 87% of cross-border funds orders automated, the ongoing progress of Luxembourg and Irish transfer agents proves that these markets are committed and want to become more efficient for the benefit of its customers. Along with the continuous increase of funds order volumes (which increased by 13.3% compared to the second half of 2016), it is also encouraging to note that ISO adoption is the first choice for TAs when setting up new links with new counterparts. This mid-year report confirms the funds community is moving in the right direction and that, more than ever, now is the moment to start focussing on the potential next buckets of automation, such as transfers, account openings and cash forecast messages.”


Most recent episodes

The Future of ESG in Treasury

In this podcast, Melissa Moi, Peter Jameson and Venkat ES from Bank of America join TMI’s Eleanor Hill to determine where the ESG journey is heading next. Our expert panel consider how changing regulation, technology solutions and metrics including ESG KPIs...


HSBC’s Sibos Spotlight: Investing in the Future – from Diversity to Green Deposits

In the final instalment of HSBC’s Sibos Spotlight, Eleanor Hill (TMI) invites Nadine Lagarmitte and Suraj Kalati (HSBC) to consider how corporates’ attitudes to...


HSBC’s Sibos Spotlight: The ESG Landscape – what every treasurer needs to know

In the third edition of HSBC’s Sibos Spotlight Podcast series, TMI’s Eleanor Hill invites Farnam Bidgoli (HSBC) to provide an in-depth overview of the current ESG...


The Path to Transformational Global Cash Visibility

Davina Bradley (CEVA Logistics) and Conor Deegan (CashAnalytics) join TMI’s Eleanor Hill to explore how treasurers can transform their cash visibility and forecasting within their business in a matter of weeks using a...


HSBC’s Sibos Spotlight: Embedding ESG in Trade and Supply Chains

In the second podcast from HSBC’s Sibos Spotlight series, TMI’s Eleanor Hill speaks to Surath Sengupta (HSBC) about embedding ESG into trade and supply chains....


Lost in Transaction: Overcoming Payments Pitfalls

From simple errors to duplicates, fraud and sanctions violations, there are a number of areas where payments can go wrong – especially in the real-time environment. In this podcast, TMI speaks to Andrew Ferrao...


HSBC's Sibos Spotlight: Central Bank Digital Currencies

The first edition of HSBC’s Sibos Spotlight series sees TMI’s Eleanor Hill joined by Mark Williamson and James Pomeroy (HSBC) to discuss the hot topic of Central Bank Digital Currencies (CBDCs). Our guests discuss...


Payments Vision 2025: The Inside Track

Wim Grosemans, Steven Lenaerts (BNP Paribas) and Wim Raymaekers (SWIFT) join TMI’s Eleanor Hill to outline their vision for the payments landscape in 2025. Our guests consider how recent developments such as instant...


Stepping Out from the Shadows

“Treasurers needs to step out of the shadows and into the sunshine in terms of their strategic contribution.” claims Zitah McMillan, Co-Founder and CEO, Predictive Black. In this podcast, hosted by TMI’s Eleanor Hill, our guest declares that the...


Why the ‘One Size Fits All’ Approach is Outdated - A Cash Segmentation Treasury Masterclass

With the ongoing low interest-rate environment and increasing regulatory change, it’s more important than ever for treasurers...