Justin Howell

Calastone, the largest global funds network, has deepened its connectivity with independent global investment manager Pendal Group to provide automated processing of fund orders via its Order Routing solution.

Pendal Group, which manages $101.7 billion for investors is now live on Order Routing and Transfers which will automate fund order flow through one centralised and interoperable network.

Calastone’s Order Routing solution processes and confirms trade information compatibly for asset managers, platforms, custodians, and administrators, creating certainty and transparency while removing the cost and risk of manual handling and duplication across the value chain.

This extended connectivity bolsters Calastone’s Australian market coverage for its Order Routing solution to 95% of fund managers.

Commenting on the announcement, Justin Howell said, “Over the past 12 months, we’ve made several enhancements to our operating model to improve the experience for our clients. Throughout this process, Calastone has brought, COO at Pendal Group,  valuable insights and expertise to ensure we are maximising the benefits of automation across orders and other operational functions.”

Ross Fox, Managing Director, Head of Australia and New Zealand at Calastone, commented, “It is always extremely rewarding working with fund managers such as Pendal Group who are building an infrastructure designed to improve and grow its business well into the future, open to the benefits and opportunities that automation and digitisation bring.

“Certainly, connecting to 95% of all locally based fund managers for order transaction processing is a tremendous milestone for Calastone and a testament to how our technology has transformed funds distribution in this market. It marks a critical juncture where best-practice technology grows into a market utility, with greater scale and power to solve industry problems and forge new ground for participants and investors,” Mr Fox said.

Last month, Calastone introduced its new Wrap Reporting service, enabling fund managers to receive fast and standardised adviser directed fund flow data from platforms via its secure network.

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Justin Howell

Mainstream Group Holdings Limited (ASX: MAI) announces that Pendal Group (ASX: PDL) (“Pendal” or “Pendal Australia”) has entered into a five plus five year agreement with Mainstream Fund Services to provide outsourced registry services. The decision follows a competitive tender process, with the transition project commencing May 2020.

Under the arrangement, Mainstream will provide registry services for Pendal’s Australian funds with approximately $19 billion^[1] of assets under management.

The arrangement will provide Pendal with Mainstream’s existing operating model for other large fund managers, including deployment of automated workflow for email and paper transactions, online transacting, XPLAN reporting, Calastone, banking automation and the newly created Quoted funds functionality.

Pendal is an independent, global investment management business with $86 billion in assets under management^[1] and a focus on delivering superior investment returns for their clients through active management.

The annual contracted fees will be approximately 6% of Australian revenue and 3% of group revenue for Mainstream. The appointment signifies the third pillar in Mainstream’s key client strategy and means Mainstream now has long term contracts with three of Australia’s largest asset managers.

Mainstream Chief Executive Officer Martin Smith commented: “We are proud to support a client of the size and calibre of Pendal with our scale and experience in registry services. We have made significant investments in our registry services over the last 3 years and look forward to partnering with Pendal to drive automation and the investor experience.”

Justin Howell, COO at Pendal Australia, said “We were impressed with the robustness of Mainstream’s registry solution as well as the calibre of their clients. We are focused on minimising risk while improving our operational efficiency and enhancing our investor’s experience. We look forward to working with Mainstream to achieve this.”

The transition of Pendal’s register of unitholders from its existing service providers will require a very close working relationship between Mainstream and Pendal over the coming months. Completion is expected by March 2021.

This ASX Announcement has been authorised by the Board of Directors.

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¹ As at 31 March 2020.

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