Auzzi Shopping

Men's Weekly

.

Calastone brings new level of automation to Class B funds with introduction of CDSC solution in Taiwan

  • Written by Auzzi Shopping
    • Calastone's Contingent Deferred Sales Charge (CDSC) solution digitalises the record of investor holdings and automates the calculation process for transfer agents creating efficiencies and cost savings for asset managers
    • New registry technology complements traditional transfer agent technology with added benefits providing end-to-end automation and supporting scale
    • First solution to automate Class B Share mutual fund deployment sees early-adoption in Taiwan as Calastone continues to extend its service offering in the market

      TAIPEI, TAIWAN - Media OutReach - 14 June 2023 - Calastone, the largest global funds network, today announces the introduction of its Contingent Deferred Sales Charge (CDSC) solution. The new CDSC solution is built using the technology enabled by Calastone's Distributed Market Infrastructure (DMI).

      CDSC funds (for example, Class B Share funds) are known for reducing market volatility as investors are incentivised with reduced fees if they retain their investments for longer. In Taiwan alone, the number of Class B Shares has grown 98% since 2017[1] as the Financial Supervisory Commission continues to incentivise investment into these funds.

      However, the benefits of Class B Share funds have been typically overshadowed by the complex processes required to administer them. Until now, asset managers have not had a digital, accurate, or real-time view of investor holding periods. Similarly, transfer agents have relied on an inefficient, costly and manual process to collect information and accurately calculate the fee charges, as they have not had a clear view of the investment holding periods.

      Calastone's CDSC solution is the first digital solution that enables asset managers with end-to-end automation by creating a shadow register of the client holdings that can be easily accessed by both asset managers and transfer agents.

      This unique offering also leverages the open microservice architecture of the DMI. The solutions uses several components of its Fund Services product suite – including Connectivity, Register, and Fees, Costs & Charges.

      Justin Christopher, Managing Director, Head of Asia at Calastone, said:

      "Despite the benefits that Class B Share funds present, the traditional model for distributing them has been very manual and expensive. Calastone CDSC is the first digital and automated solution that provides an efficient, cost effective, and scalable way for asset managers to distribute Class B Share funds, and enables transfer agents to support their asset management clients more effectively at scale. The solution will enable asset managers to launch and operate Class B Share funds with ease whilst reducing frictional costs and operational risk.

      We are thrilled to see early adoption in Taiwan from one of our leading clients. Taiwan is a unique, rapidly evolving market and we continue to expand our presence in the region. Following the successful launch of the solution in Taiwan, we look forward to supporting more asset managers and investors in Asia with launching CDSC funds in an automated and scalable way."



      [1] Source: Lipper 2023


      Hashtag: #Calastone

      The issuer is solely responsible for the content of this announcement.

      About Calastone

      Calastone is the largest global funds network, connecting the world's leading financial organisations.

      Our mission is to help the funds industry transform by creating innovative new ways to automate and digitalise the global investment funds marketplace, reducing frictional costs and lowering operational risk to the benefit of all. Through this, we make investing more accessible, generating the opportunity for the industry to deliver greater value for the investor.

      Over 3,800 clients in 54 countries and territories benefit from Calastone's services, processing £250 billion of investment value each month.

      Calastone is headquartered in London and has offices in Luxembourg, Hong Kong, Taipei, Singapore, New York, Milan, and Sydney.

Today's Features at Auzzi

From Diet to Dental Devices: Holistic Ways to Keep Cavities at Bay

Image by lookstudio on Freepik Tooth decay is one of the most preventable health issues in Australia—and yet, it’s alarmingly common. According to the AIHW, nearly 1 in 3 Aussie adults...

Unlocking Potential: What Canberra's Disability Employment Programs Can Do For You

Image by freepik Finding meaningful work can be a challenge for anyone, but it can be especially daunting for individuals living with a disability. Navigating the job market, understanding ...

Energy-Efficient Window Replacement In Perth: Save on Bills and Enhance Comfort

Image by freepik Perth residents are coming to understand that replacing the windows in their homes is one of the most cost and energy-efficient upgrades they can make. The window replac...

The Power of Professional SEO Services in Today's Digital Landscape

Image by rawpixel.com on Freepik The digital landscape is changing rapidly, and for any business, having an online presence is a necessity rather than a choice now. Search engine optimisat...

How to Unclog Your Blocked Stormwater Drain Efficiently

Maintaining an efficiently functioning stormwater drain is a crucial responsibility for property owners. Blocked stormwater drains can wreak havoc on your property, negatively affecting yo...

What is a Formal Dress for Women?

Designed by Freepik A formal dress functions as an expression of culture and personal style. Formal dresses for women are outfits made for special formal ceremonies and superior social enga...

Mastering the Modern Executive Job Search: What Professionals Need to Know

Image by senivpetro on Freepik The job market has evolved significantly in the past decade, especially at the senior level. Traditional methods of job hunting no longer suffice when you're ...