Written by Howard Finnegan on Monday 8 July 2013
Between April and June electronic transfers and re-registration activity increased dramatically. We’ve seen the number of transfers and asset re-registrations completed electronically increase exponentially month on month. But has the market reached critical mass?
Let’s look at some of the statistics we collected at the end of June;
- 7 platforms operating live electronic transfers (5 using the Altus Transfer Gateway) representing 53% of AUA on platforms.
- 24 Fund Managers operating live electronic transfers (all using the Altus Transfer Gateway) representing 61% of UK funds under management.
If your definition of critical mass means over 50% of the market then based on AUM the transfer market has reached critical mass. The Altus transfer solution (ATG) is currently being implemented by a further 6 of the top 20 platforms and a number of fund managers, most will begin live operation over the summer. We also expect another transfer solution provider to start live operation in the next few weeks, which will add more platforms and fund managers to the ‘wired up’ list. So, by the end of September we’re confident there will be over 80% of platforms (by AUA) and 85% of funds managers (by FUM) supporting electronic transfers and re-registration, surely that is critical mass!
Market coverage isn’t everything, the real benefit is the dramatic reduction in the time it takes to complete transfers and the amount of paper being processed. We’re seeing entire portfolios, where all the counter parties are ‘wired up’ and all assets are re-registered completing within 48 hours, in certain specific cases when the wrapper and funds are with the same client the transfers have been completing in 15 minutes! More generally, portfolio transfers involving re-registration across multiple fund managers are completing well within the TeX 6 day SLA. We hear comments from our clients like, ‘in January we were drowning under the weight of paper hitting our transfer desks every day, now some days up to 80% of our asset re-registrations are electronic and I have a clear view of my desk!’ (Transfer Manager, major UK platform).