RESEARCH: LATE CASH SETTLEMENTS CONTINUE TO PLAGUE GLOBAL FUNDS INDUSTRY

Perspectives from fund managers, distributors and platforms across the UK, Europe, Hong Kong, Singapore and Australia/New Zealand

Large parts of the world’s fund industry are struggling to contain the impact of late cash settlements in their fund transactions. The effects range from unwanted credit exposures and time-consuming and costly administrative burdens to damaged client relationships. 

The survey exposes the need for more automation of trade to cash settlement processing – and in the updating of trade registers.

These are some of the findings of a survey conducted by Calastone of 51 leading investment managers and fund distributors in the UK, Europe, Australasia and Asia. 

Key headlines include:

  • 100% of firms have to intervene manually in the cash settlement process
  • Manual processing is the primary risk in the cash settlement process – 59%
  • Late payments significantly affect client service – 59%

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