Goldman Sachs Asset Management
Order Routing Services – Connecting to the Money Markets
Goldman Sachs Asset Management (GSAM) joined the Calastone network initially as a fund manager and more recently as a platform, allowing client access to GSAM funds through Calastone’s Order Routing service.
As one of the industry’s leading providers of money market products, GSAM seeks to be unique in that it offers a liquidity portal which allows investors to access not only funds offered by GSAM but also a range of third party funds, in order to help their clients better manage risk. In 2014, GSAM enhanced its liquidity portal by adding a Transparency Tool, allowing investors to manage risk across multi-fund portfolios.
In engaging Calastone, key goals of GSAM were to obtain whole of market access via the SWIFT Network using both ISO 15022 and ISO 20022 standards, using a single provider and without having to invest directly into costly SWIFT infrastructure.
The challenge: time to market
GSAM faced a very short window for implementation. It was important that they identify a provider that was not only reliable and trusted, but was also flexible and shared their client-focused approach. Calastone, already an established partner, was the natural choice. Tim Broadly, Executive Director in Distribution Services at Goldman Sachs explained, “Based on our past experience, we knew the promise of Calastone’s service as well as its extensive experience and track record of delivering on time. Calastone focuses on client relationships and working with clients to find a suitable solution. Ensuring our clients’ needs were met was a critical factor when making our decision.”
Concept to reality in 3 months
The Order Routing project was one component of a broader strategic initiative being carried out at the time by GSAM, meaning the work had to be completed in a very short timeframe. Tim noted that, “There were lots of moving parts: it was important that the Calastone part of the overall project went as smoothly as possible so we could concentrate on the other two.” The Goldman Sachs team were impressed with the positive attitude of the Calastone team throughout the 3-month period from first meeting to the go-live. Overall, the Goldman Sachs team considered the onboarding process to be a great success.
As an outcome, one of the most positive benefits GSAM has seen from using Calastone’s Order Routing Service has been the enhanced scalability of its liquidity portal offering. Tim commented, “It has allowed us to go out there and continue to grow our business with a reliable partner who offers a first-class, excellent service that allows us to fulfil our clients’ needs.” Furthermore, automation through Calastone’s platform has notably provided the Goldman Sachs Global Liquidity Services Portal with streamlined automated flows and overall reduced risk.
What the future holds: collaboration of ideas
GSAM have expressed interest in learning about the many exciting projects Calastone are proposing. For instance Calastone feels its upcoming Distribution Support Data Services project could help GSAM automate many of the reporting and data feeds into the GSAM portal infrastructure. This could further improve the client experience and also streamline the reconciliation process. Tim noted, “With Calastone the relationship is a collaboration of ideas, and we certainly think of Calastone as a partner as we continue to grow our portal business.”