Transparency of holdings (VestimaTRACK)
In order to increase transparency throughout the investment funds processing chain, Clearstream offers a single, consolidated statement of holdings, integrating information that is relevant to both the distributors and the fund/transfer agents.
The Vestima service is based on a robust system: collecting, enriching and disseminating holdings information. Distributors and transfer agents alike benefit from a significant reduction in administrative tasks, through processing trailer fees and other retrocessions in the investment funds markets.
Vestima offers full reporting services. Real-time reporting capabilities allow customers to correct trade detail discrepancies before settlement deadlines to avoid settlement failure.
Clearstream has an authorised disclosure policy in place offering an overview of account positions that:
- Can be viewed by the fund manager and transfer agent only (as per prospectus);
- Contain positions and/or transactions;
- Can be electronically received monthly, weekly or daily;
- Charges only a small handling fee to the receiver of the report;
- Offers a veto to an account holder for the disclosure of his account information.
All reports can be downloaded in CSV format for further processing.
The VestimaTRACK report takes disclosure to the next level and offers distributors and transfer agents increased transparency throughout the processing chain by collecting, enriching and disseminating holdings information. This is particularly important when processing trailer fee claims.
The custody chain and trailer fee calculation requirements are not naturally compatible, which means efficient custody processing can lead to inefficient trailer fee processing. The VestimaTRACK report provides the solution by consolidating and enriching data provided by the distributors, and then distributing the consolidated report to the relevant transfer agents.
VestimaTRACK reports are available in CVS and XML versions. Clearstream has completed the ISO 20022 registration of a new message (semt.041) based on VestimaTRACK, and will soon offer this as a reporting option via SWIFT.
Downstream transaction chain
Investment fund markets are structured along the downstream transaction chain, with the highest concentration on the transfer agents’ side to increase the consolidation of holdings. This allows custodians and distributors to optimise their operational efficiency and, in doing so, reduce asset servicing costs.
Upstream of the processing chain
For transfer agents, it can be difficult to verify the positions of market participants, with the visibility of holdings decreasing as you go up the custody chain. In simple terms, the economies of scale gained by the custody chains are working against the interests of transfer agents when they perform trailer fee calculations and similar processing.
The VestimaTRACK report is a stand-alone system collecting and storing positions and transactions from different sources to provide distributors and fund promoters with a shared view on position. In summary it allows them to:
- Reconcile positions, track sales and perform trailer fee calculations;
- Link positions to distribution agreements through an imbedded distribution agreement repository.
The VestimaTRACK report offers distributors and transfer agents:
- Significant reduction of administrative work;
- Increased transparency throughout the processing chain;
- Improved trailer fee processing.