Euroclear Sweden extends fund universe via FundSettle
Brussels and Stockholm, 19 March 2014 – Euroclear Sweden, the Swedish Central Securities Depository (CSD), today launches a link to Euroclear Bank’s automated processing platform for cross-border and domestic funds – known as FundSettle. In so doing, Swedish investment fi rms now have access to over 80,000 foreign funds from over 25 markets via Euroclear Sweden.
Swedish distributors, cross-border fund management companies and transfer agents now benefi t from automated fund-transaction order routing between relevant parties on a straight-through processing basis at Euroclear Sweden.
Paul Brady, Director at Franklin Templeton Investments, said: “We welcome this initiative as we strongly believe that we will continue to be able to deliver our funds to this important Nordic market, via a proven, safe and effi cient distribution network.”
Anders Löfgren, Head of Product Management at Euroclear Sweden, stated: “Greater fund processing effi ciency is an area where our infrastructure role is adding value by slashing back-offi ce processing costs and risks through automation and standardisation. The Swedish fund market enjoyed a phenomenal 2013 in terms of net infl ows, up SEK 430 billion (EUR 48.4 million) on the previous year, according to Fondbolagens Föreningen (Swedish Investment Fund Association). This strong trend of fund buying has continued into 2014, and spurred Euroclear to further strengthen its operational support to the Swedish investment industry by expanding the scope of possibilities and diversifi cation opportunities to all relevant parties.”
In subsequent phases, Swedish fund companies which today manage roughly 1,400 funds worth SEK 2.4 trillion (EUR 270 billion) are planned to be made available to non-Swedish investors via FundSettle for automated, electronic transaction processing in the coming year.
This new fund service at Euroclear Sweden is a core of Euroclear’s overall objectives for investment fund processing; a fully automated pan-European investment fund solution giving all Euroclear clients easy access to domestic and international funds, as well as a choice of services and connectivity options.
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About Euroclear Sweden
Euroclear Sweden plays a central role in the Swedish capital market. As the national central securities depository for Sweden, it is the organisation that holds registers of almost all shares and debt securities traded in the Swedish financial markets. As well as keeping the register, it clears and settles transactions in Swedish shares, debt and investment funds securities, and provides comprehensive custody and issuer services.
Euroclear Sweden settled 12 million netted transactions in 20 valued at the equivalent of EUR 11 trillion (SEK 100 trillion). EUR 1.276 trillion (SEK trillion) of securities were in safekeeping for clients at Euroclear Sweden at the end of 2013.
FundSettle serves as a single access point for fund investors to process subscriptions, redemptions, transfers and switches, covering more than 80,000 investment funds worldwide and over 500 transfer agents.