In Australia, RBC Dexia is the first unit registrar to be SWIFT-enabled and operative as part of an industry-wide drive to promote straight-through-processing. RBC Dexia currently has the largest market share of custodial managed funds processing in Australia, with 40% of transaction volumes as per ACSA industry statistics. Together with other market participants, SWIFT has developed local market practices, tailoring globally adopted messages to local requirements to promote STP in the Australian fund management industry.
Gordon Little, Head of Fund Services for RBC Dexia, commented: “The benefits automation brings in terms of efficiency, cost and risk management make its adoption a priority for fund management in Australia. In Europe, RBC Dexia processes more than 400,000 fund transactions per annum through SWIFT. RBC Dexia has now transitioned the administration for all its unit registry clients on to the global SARA unit registry platform, to its Operation Centre in Melbourne as part of its commitment to enhancements in automation and reporting for all clients. In addition, the company plans to add SWIFT capability to its custody operations in Australia, enabling it to interact with unit registries who participate in the SWIFT initiative on an STP basis in 2009.
RBC Dexia Investor Services has been selected by ING Investment Management Asia Pacific as the preferred provider of administrative and nominee services for its offshore funds distribution in the region. There are 4 active ING Luxembourg domiciled funds serviced by RBC Dexia Investor Services and this will be expanded to 11 funds, representing over 300 share classes covering jurisdictions including Hong Kong, Taiwan, Singapore, Malaysia and Philippines.
Scott McLaren, Head of Asia Pacific Sales and Relationship Management commented: “This mandate strengthens RBC Dexia’s position in Asia and enhances its reputation for excellence in investor services by demonstrating the continued success of the company’s unique regional transfer agency model for global managers who want to expand their distribution strategy into Asia.”
McLaren says RBC Dexia’s experience of servicing Luxembourg funds which comply with the European UCITS regulations has obvious benefits for those international managers marketing their range around Asia, where local regulators provide mutual recognition: “The UCITS compliant funds are a well-established brand, passportable into Singapore, Hong Kong, Taiwan and Korea. Most global fund managers have this strategy these days, using UCITS for global distribution, and Asia is seen as a market that they need to be in. The RBC Dexia solution for these fund managers is to service their business in the Asia time zone using global systems, an end-to-end solution which delivers efficiencies as well as local expertise but reducing the operational handovers and therefore speeding up the process and reducing the operational risk.”