Key developments to enhance AFB digital strategy
Investors more able to diversify sources of return
ETF managers will benefit from real time flow and market intelligence
Allfunds is to launch a new ETF service on its platform on 1 June following an ambitious digital strategy, continuous innovation drive and focus on wealth management shifts post MIFID 2. The leading B2B platform will enable investors to enhance their ability to diversify sources of return.
In an era driven by technological innovation, the new Allfunds ETF service will offer Europe’s largest fund distribution network, multiple investment options, so making it possible for financial institutions to offer new investment solutions and strategies to their customers.
The move is significant in the digital evolution of the financial industry given that the company will provide wealth managers with a single point of access, using standardised processes for all ETFs and mutual fund transactions through their existing reporting and custody frameworks. Existing funds’ services will therefore be supplemented with ETF focused services relating to execution, reporting, information and research.
These services will have a wide range of features including multi broker access, multi custodian links, and connectivity via equity standards. Distribution of ETFs into the retail market will be enhanced as Allfunds will offer fractional dealing - a complex regime which opens up the ETF market to those investing smaller sums of money.
Integration of the new services will immediately benefit Allfunds existing institutional clients as their existing operational processes, such as their current brokerage relationships, can be utilised. Also, the new ETF service is fully aligned with the latest regulatory requirements which guarantee best execution. To align with the common desire of regulators internationally to reduce the cost of transactions in the funds industry, Allfunds is committed to offering competitive operational and transactional costs.
Allfunds decision to offer ETFs to its distributors’ networks, has been welcomed by ETF providers who have said to Allfunds that the move could spur greater uptake of the products among retail investors. As part of the new proposition, Allfunds has agreed with selected ETF providers to offer enhanced services to facilitate ETF distribution. These enhanced services include sophisticated management information, educational programs and reporting services. These and other ETF providers will now be able to readily access wealth management and distribution, so benefiting from the same service standards as fund providers. The selected list of leading ETF providers currently includes: iShares, Lyxor, Source and Deutsche Xtrackers
Allfunds Bank CEO Juan Alcaraz said,
“Allfunds is always working to lead the development of Open Architecture in the funds industry. We therefore identified the demand and requirements for the distribution of ETFs for financial distributors and ETF providers. Buying an ETF in the stock market is one thing, incorporating ETFs in the wealth management industry’s current distribution framework is a completely different matter. We therefore believe that our ETF service position is unique and brings a new dimension to ETF distribution both for wealth managers and their retail investors”.
*‘European Fund Distribution: Leading Platforms,’ Platforum, March 2017
Allfunds Bank is an internationally focused financial technology company that provides efficient technologies to enable manufacturers of mutual funds (and now ETF providers) to effectively distribute their products to fund distributors and their investor clients. It does so while managing the complex administrative burden of transacting mutual funds in a compliant manner and providing significant volumes of important regulatory and commercial management information to the parties involved. Created in 2000, Allfunds Bank now has more than €280 Billion assets under administration and offers close to 52,000 funds from 540 fund managers. Allfunds Bank has a local presence in Spain, Italy, UK, Chile, UAE, Switzerland, Colombia, Luxembourg and Singapore and has more than 530 institutional wealth management clients, including major commercial banks, private banks, insurance companies, fund managers, financial supermarkets, international brokers, and specialist firms, from 38 different countries.
John Morgan, Fortuna AMC
Mob: 07769 262272