Tech In­vest­ment

Business First - - NEWS -

DST Global So­lu­tions, a mar­ket-leading provider of tech­nol­ogy so­lu­tions for the in­vest­ment man­age­ment in­dus­try, says the lat­est data on to­tal as­sets un­der cus­tody for Aus­tralian in­vestors high­light the need for as­set man­agers and as­set ser­vicers to have scal­able tech­nol­ogy so­lu­tions in place that ef­fi­ciently man­age this huge and grow­ing as­set pool.

Data re­leased this month show that to­tal as­sets un­der cus­tody for Aus­tralian in­vest­ment firms rose 8.3% be­tween June 30, 2013, and De­cem­ber 31, 2013, to $2.3 tril­lion. Of that to­tal, $1.7 tril­lion were Aus­tralian as­sets (up 8.4% over the pe­riod) and $647 bil­lion were in­ter­na­tional as­sets (up 7.4%).

Rhys Octi­gan, head of busi­ness de­vel­op­ment, Aus­tralia & New Zealand for DST Global So­lu­tions, says, “As in­vestor as­sets un­der cus­tody climb higher, driven by ris­ing as­set val­ues and su­per­an­nu­a­tion in­flows, cus­to­di­ans and in­vest­ment ad­min­is­tra­tors need to have the right tech­nol­ogy so­lu­tions in place to process this huge pool of as­sets with speed, ac­cu­racy and re­li­a­bil­ity. True scal­a­bil­ity can­not be achieved by sim­ply throw­ing man hours at a prob­lem, and con­se­quently, tech­nol­ogy that en­ables straight-through-pro­cess­ing of even the most com­plex as­set classes is now seen as an es­sen­tial com­po­nent in win­ning new man­dates and on­board­ing new clients.”

Pro­cess­ing over 70% of in­vest­ment trans­ac­tions in the Aus­tralian mar­ket, HiPort­fo­lio, DST’s in­vest­ment ac­count­ing and as­set ser­vic­ing so­lu­tion, has over 18,000 man days of R&D in­vested an­nu­ally to help in­vest­ment man­age­ment firms au­to­mate end-to-end pro­cesses, in­crease ef­fi­ciency and re­duce op­er­a­tional risk. The driv­ers are two-fold: to en­sure in­vest­ment ac­count­ing and ad­min­is­tra­tion tech­nol­ogy sup­ports new prod­ucts and ser­vices from as­set ser­vicers; and to op­ti­mise in­vest­ment op­er­a­tions.

The new ca­pa­bil­i­ties in HiPort­fo­lio sup­port a va­ri­ety of do­mes­tic and in­ter­na­tional ABS and MBS, as well as com­pound­ing-in­ter­est and in­fla­tion-linked swaps, while com­ply­ing with Aus­tralia’s com­plex tax re­quire­ments in­clud­ing Tax on Fi­nan­cial Ar­range­ments (TOFA) cal­cu­la­tions. This helps sig­nif­i­cantly im­prove reporting abil­i­ties by the cus­to­dian to its clients and pro­vides more trans­parency to bet­ter eval­u­ate in­vest­ment de­ci­sions.

“The de­mand for more so­phis­ti­cated tech­nol­ogy to meet reg­u­la­tory and client re­quire­ments means it’s time for as­set ser­vicers to as­sess where up­grad­ing or ex­pand­ing their use of their IT sys­tem can achieve ef­fi­cien­cies to boost pro­duc­tiv­ity and gain a com­pet­i­tive ad­van­tage to win new man­dates and clients,” Mr Octi­gan says.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.