Capita Financial Group joins Central Facility for Funds
Press Release 23 June 2009
Capita Financial Group, a major player in the UK funds industry is joining the Central Facility for Funds (CFF), Clearstream’s innovative post trade solution for investment funds.
Last October, the UK became the fifth market in Europe (after Luxembourg, Belgium, Ireland and Switzerland) to open up to CFF. CFF was launched in March 2007 initially for investment funds domiciled in Luxembourg, the largest market in Europe for international funds. Today, CFF counts 44 members and offers access to more than 35,000 fund classes. Altogether, 73 UK funds houses are already available on Clearstream Investment Funds Services platform, which includes Vestima+ in addition to CFF.
CFF offers all participating transfer agents (1), fund distributors and fund promoters one single set of settlement and payment instructions for all eligible funds which accelerates and simplifies operational processes as well as reduces risks. CFF provides post trade services, with an architecture open to the various order execution processes and is fully integrated with Clearstream’s existing ICSD custody and settlement services. This allows CFF participants to keep their funds holdings on the same custody platform as the one already used for other share classes.
Clearstream designed CFF as an answer to growing market demand in Europe and in Luxembourg. The Funds industry has grown 80% since 2005 but its post trade area is still characterized by high fragmentation, little standardization and thus operational risk. According to a study by Deloitte, a consultancy, the cross border investment funds industry could save up to 30% of processing costs and gain over € 300 million by streamlining the processes of cross border mutual funds distribution.
Philippe Seyll, Head of Investment Funds services, Clearstream said “We are very pleased that Capita, who is a major player in the UK fund industry has joined CFF. With Capita, Clearstream Investment Funds Services give access to most of the UK regularly subscribed Investment funds.We strongly believe that the fund industry should benefit from the same efficient processes available for other asset classes and look forward to continue providing these processes to all market participants”.
Chris Addenbrooke, Chief Executive Officer, Capita Financial Group said: ”Capita Financial Group has been at the forefront of the UK investment fund administration industry since its inception. Our current and extensive client portfolio reflects our expertise in the market as well as showcasing our successful approach to building strong client relationships for the long term. In recent years, we have extended our expertise to other jurisdictions outside of the UK, tailoring services to the demands of our fund management clients and each area’s unique regulatory environment. Joining CFF will allow us to be more cost effective and offer an enhanced service to our clients and their distributors.”
(1) Transfer agents are banks or financial institutions that keep the register for a fund promoter of the individuals and entities that own fund shares of this promoter's fund.
Media Contacts
For Clearstream
Bruno Rossignol / Yolande Theis +352-243-31500,
bruno.rossignol@clearstream.com / yolande.theis@clearstream.com
For CapitaCaroline Mooney, Capita press office
Tel: 0207 654 2152 or 0207 654 2399 (out of hours)
About Capita Financial Group
Capita Financial Group operates in the UK, Ireland, Gibraltar, Jersey and Guernsey. The business administers in excess of £28 billion of assets on behalf of more than 100 investment management groups. It is the dominant provider of the UK ACD model for collective investment schemes, and is the second largest administrator of outsourced closed ended funds. Further information on Capita Financial Group can be found at http://www.capitafinancial.com/
The Capita Group Plc is the UK’s leading provider of BPO and integrated professional support service solutions. With 36,000 people at more than 300 sites, including 62 business centres across the UK, Ireland, the Channel Islands and India, the Group uses its expertise, infrastructure and scale benefits to transform its client’s services, driving down costs and adding value. Capita is quoted on the London Stock Exchange (CPI.L), and is a constituent of the FTSE100 with revenues for 2008 of £2,441 million. Further information on The Capita Group Plc can be found at: http://www.capita.co.uk/