Fund managers to launch blockchain ecosystem
01 May 2019 London
Image: Shutterstock
FNZ has partnered with several global fund managers to launch a production blockchain-powered market infrastructure for the asset management industry.
The global fund managers include Aberdeen Standard, Equity Trustees Fund Services, Kames Capital, Legg Mason and Merian Global Investors.
According to FNZ solution, the 'FNZ ChainLink', leverages blockchain technology to replace the thousands of copies of transaction and holdings in the managed funds industry.
It will do this with a single, secure verifiable source of 'the truth', universally accessible by all parties, FNZ noted.
FNZ explained that this vastly reduces cost, complexity, and risk in back-office operations that is ultimately borne by retail.
Phil Goffin, head of innovation at FNZ, commented: “The global fund industry today relies on a plethora of peer-to-peer connections between investors, managers and platforms to effect basic fund activities such as trading, settlement, transfers, distributions and reconciliations.”
“None of these transactions are synchronised in real-time. Everyone has a different view of 'the truth', that often persists for days and months, leading to errors and exceptions, high back-office costs and risk for all participants.”
Goffin continued: "In initially bringing this to market, particularly in the early stages of production operation, we have worked with FNZ-powered platforms and those asset managers for whom FNZ is the transfer agent."
"However, FNZ ChainLink is an open-market solution, based on open-source Hyperledger Fabric. We are working with a number of transfer agents, asset managers, and platforms that aren't FNZ-powered to ensure the benefits are shared by the whole industry."
FNZ’s CEO and founder Adrian Durham added: "FNZ processes on average, half a billion pounds sterling in mutual fund orders every day in the UK, and over a billion pounds on peak trading days.”
“We are committed to lowering cost and risk, not just for FNZ, but for the entire industry. We also plan to evolve the nature of managed funds themselves, enabling innovation in how asset managers deliver solutions for retail investors."
The global fund managers include Aberdeen Standard, Equity Trustees Fund Services, Kames Capital, Legg Mason and Merian Global Investors.
According to FNZ solution, the 'FNZ ChainLink', leverages blockchain technology to replace the thousands of copies of transaction and holdings in the managed funds industry.
It will do this with a single, secure verifiable source of 'the truth', universally accessible by all parties, FNZ noted.
FNZ explained that this vastly reduces cost, complexity, and risk in back-office operations that is ultimately borne by retail.
Phil Goffin, head of innovation at FNZ, commented: “The global fund industry today relies on a plethora of peer-to-peer connections between investors, managers and platforms to effect basic fund activities such as trading, settlement, transfers, distributions and reconciliations.”
“None of these transactions are synchronised in real-time. Everyone has a different view of 'the truth', that often persists for days and months, leading to errors and exceptions, high back-office costs and risk for all participants.”
Goffin continued: "In initially bringing this to market, particularly in the early stages of production operation, we have worked with FNZ-powered platforms and those asset managers for whom FNZ is the transfer agent."
"However, FNZ ChainLink is an open-market solution, based on open-source Hyperledger Fabric. We are working with a number of transfer agents, asset managers, and platforms that aren't FNZ-powered to ensure the benefits are shared by the whole industry."
FNZ’s CEO and founder Adrian Durham added: "FNZ processes on average, half a billion pounds sterling in mutual fund orders every day in the UK, and over a billion pounds on peak trading days.”
“We are committed to lowering cost and risk, not just for FNZ, but for the entire industry. We also plan to evolve the nature of managed funds themselves, enabling innovation in how asset managers deliver solutions for retail investors."
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