Schroders connects to Calastone for funds distribution
NEWS | 05 March 2009
Calastone Limited, the independent cross-border transaction network for the mutual funds industry, announced today that fund manager Schroders has signed an agreement to offer dealing in its funds via Calastone.
Schroders’ mutual fund third party administrator, International Financial Data Services (IFDS), has connected to Calastone and, as a consequence, Schroders can take advantage of STP efficiencies, not only from the automation of the entire lifecycle of mutual fund trades including settlement, but also by taking advantage of the business flow process automation achievable by Calastone connectivity.
Calastone’s membership fee free basis, and a low tariff pricing model is enabling the mutual fund community to reduce cost and operational risk. For the first time, irrespective of their preferred method of connectivity, messaging protocol or standards, all Calastone participants enjoy straight through processing regardless of their size or technology capabilities. In addition, transactions can now be tracked and exceptions managed on a real-time basis via the Calastone EMS.
Commenting on the agreement, Kevin Lee, Managing Director of Calastone said, "We are delighted to welcome Schroders as a participant. IFDS has been instrumental in assisting Schroders to connect to Calastone and has been an early adopter in realising the efficiencies and savings it can offer its clients. There is nothing to prevent all IFDS’s fund management clients from benefiting from lower costs and increased distribution. Fund management firms, such as Schroders, will continue to benefit as more and more distributors connect to Calastone, announcements of which will be made in due course."
Alex Murton of UK Funds Services at Schroders added, "We have been impressed with Calastone and IFDS’s collaboration to offer greater choice for the mutual fund community. Healthy competition will only benefit the fund industry by reducing transaction costs. We look forward to embracing the opportunities Calastone's global reach will offer."