Aberdeen Standard Investments full fund range is now live with Calastone Settlements global network service after the addition of all Standard Life Investments (SLI).
Calastone, the global fund transaction network, said in a statement that the SLI funds is live on Calastone’s automated funds settlement solution, electronic straight through processing.
Prior to Aberdeen Asset Management’s £11bn merger with Standard Life early this year, Aberdeen Unit Trust Managers Limited was already live on Calastone’s settlement service.
As trading volumes grow, the operational challenges of managing post trade reconciliation continue to increase. Additional costs will be incurred in settlement due to the financial provisions required to cover all settlement payment flows, tying up operating capital and reducing liquidity, Calastone said.
Mike Tumilty, director of operations at Aberdeen Standard Investments, said: “Aberdeen Standard Investments are committed to leveraging technology to improve process, product and client experience. With Calastone Settlements we recognise that further efficiencies can be realised by taking advantage of this automated net settlement solution, which has already been deployed in other parts of our organisation.”
Headquartered in London Calastone Settlements has offices in Luxembourg, Hong Kong, Taiwan, Singapore and Sydney.
It claims to be the only commercial settlement system “designed specifically for the funds industry”. The solution automatically matches trades and calculates the net settlement position between each trading counterparty. As a result, settlement payments can be reduced, up to 58%, according to analysis from Calastone & IMA trading data between fund managers and distributors during 2016.
This article first appeared in our sister title ‘International Investment’.