11 July 2018

Tracking APAC funds processing automation and standardisation rates

New report from SWIFT and joint partners, AFAC, HKIFA and ALFI, shows industry automation rates at 68.4% of fund orders in H2 2017

APAC funds processing automation and standardisation rates

SWIFT together with joint partners AFAC, HKIFA and ALFI, published today a new report on the current levels of automation and standardisation rates of fund orders received by transfer agents (TAs) in the Asia Pacific fund processing centres of Hong Kong, Taiwan and Singapore for the second half of 2017.  The report is an on-going campaign by SWIFT and fund industry partners to highlight the state of play of automation and standardisation rates of orders of cross-border funds, and track progress. 25 TAs from the three markets participated in this survey.

Key findings of the report include:

  • The total volume processed by the 25 survey participants reached 3.4 million orders in the second half of last year.
     
  • The total automation rate of processed orders of funds reached 68.4% in the second half of 2017. In the second half of 2017, ISO messaging standards were used in 32% of the volumes, whilst manual processes hovered at the 31.6% mark for the same time period.
     
  • In Hong Kong, the total automation rate of orders processed reached 60% in H2 2017. The ISO automation rate recorded at 22% during H2 2017, while the use of proprietary FTP recorded at 38% for H2 2017.
     
  • In Taiwan, the total automation rate of orders processed reached 81.1% in H2 2017. The ISO automation rate reached 45.7% during H2 2017, while the use of proprietary FTP reached 35.4% for H2 2017.
     
  • In Singapore, the total automation rate of orders processed reached 59.4% in H2 2017. The ISO automation rate was at 28.2% during H2 2017, while the use of proprietary FTP recorded at 31.2% in H2 2017.

On the report, Alexandre Kech, Head of Securities & FX, APAC, SWIFT, says: “Understanding the level of automation of the funds industry in Asia Pacific is key for SWIFT and our regional fund associations partners to further develop collaboration strategies around increasing standardisation and Straight-Through-Processing, (STP). These strategies are important as they ultimately aim at increasing efficiency, at enabling scalability and growth but also at reducing cost and operational risk.”

Understanding the level of automation of the funds industry in Asia Pacific is key for SWIFT and our regional fund associations partners to further develop collaboration strategies around increasing standardisation and Straight-Through-Processing.

Alexandre Kech, Head of Securities & FX, APAC, SWIFT

HKIFA, notes: “The inaugural report gives fund managers more insights to the state of automation and standardisation of cross-border funds within key markets in the Asia-Pacific. The rate of adoption is at a reasonable level, though there is still much room for improvement. The industry will continue to strive to further enhance operational efficiency so that we can achieve better outcomes for investors.”

Ching Yng Choi, Head of the ALFI Asia Representative Office says: “ALFI is highly supportive of this initiative by SWIFT which follows the path of the work carried out in Europe between SWIFT and EFAMA. This survey is a good starting point for understanding the level of automation in Asia and subsequently identifying action points that associations such as ALFI can promote among its working group members.

AFAC adds: “Fund managers are supportive of greater automation, working with transfer agents, distributors and automation partners.  Greater transparency into the current state will help all strive for greater automation.  Individual firms will be able to benchmark their own performance, and strive for best practice.” 

Please download a full copy of the the SWIFT and Joint Partners APAC Funds Processing Automation and Standardisation Report H2 2017.

APAC Funds Processing Automation and Standardisation Report

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Last update: 
9 July 2018

The objective of the APAC Funds Processing Automation and Standardisation report, provided by SWIFT and its partners HKIFA, ALFI and AFAC, is to provide periodic information on the industry’s progress towards increased levels of automation of fund orders and the use of ISO standards. Users of this report include market players involved in funds processing transaction flow, asset managers, regulators & policy makers and other interested stakeholders.

  • Securities
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Notes:

The Asia Funds Automation Consortium (“AFAC”) is a group of international asset managers committed to driving Straight Through Processing (STP) within the Asia Pacific fund industry by defining a common STP strategy for each country, taking advantage of different technological platforms already available.

Hong Kong Investment Funds Association (“HKIFA”) is a not-for-profit trade body that represents the fund management industry of Hong Kong. It has two key briefs, namely consultation and education. It maintains close dialogues with the authorities and acts as an important bridge to represent the views of the industry. HKIFA has 84 fund manager members and 37 associate members.

The Association of the Luxembourg Fund Industry (“ALFI”) is the official representative body for the Luxembourg investment fund industry and was set up in November 1988 to promote its development. ALFI has an Asia representative office with active working groups in Hong Kong and Singapore.

Securities

APAC Funds Processing Automation and Standardisation Report

The objective of the APAC Funds Processing Automation and Standardisation report, provided by SWIFT and its partners HKIFA, ALFI and AFAC, is to provide periodic information on the industry’s progress towards increased levels of automation of fund orders and the use of ISO standards. Users of this report include market players involved in funds processing transaction flow, asset managers, regulators & policy makers and other interested stakeholders.

PDF icon Download (752.7 KB)
English

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