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The making of a global invisible giant

Global distribution continues to be the engine of growth in mutual funds. Asset Servicers, particularly Transfer Agents (TA) & Distribution Support Services (DSS) providers, continuously strive to enhance and develop innovative services to support their clients’ (Asset Managers) global distribution strategies.

Josée-Lynda DENIS speaking at the ALFI TA & Distribution Forum 2014 edition.

Luxembourg Asset Servicers have been providing TA & DSS for over 25 years now. Today, they maintain and service approximately 8 million shareholder accounts, over 55,000 distribution agreements across more than 70 countries of sale, and the list go on. Add to this the growth of the Alternative Investment funds space, the latest and future regulatory & market developments, new distribution countries/territories such as China, bringing in new investment products and currencies, such as the RQFII and the renminbi, as an additional fund currency.

TA & DSS place such an important part of the Luxembourg funds’ life cycle that Luxembourg launched its own Fund Operations community in 1999 - The ALFI TA & Distribution Forum.

Ease of doing business in Luxembourg-domiciled funds

The ALFI TA Forum liaises with the Asset Servicing community and other related associations in the world, bringing together industry peers to share experiences and discuss issues related to global fund distribution operations, with the main aim, to ensure the ease of doing business in Luxembourg-domiciled funds.

Needless to say that, Asset Servicing (Custody, Depository Bank, Fund Accounting, TA, DSS, Fund Communication, etc.), is entering a brave new world today. Not only from a regulatory standpoint but also, with the increasing development of fund platforms that directly affect a fund’s life cycle. One could even say that the whole “logistics” surrounding the fund distribution operations value chain are going through a major change, having to, continuously evolve with the global fund industry’s expansion to new countries and territories, and their most important contributors, the fund distributor and the investor.

In constant adaptation

The nature of Luxembourg as a leading global fund servicing center is – constant adaptation – to meet asset managers’, their distributors’ and, the most important, the investors’ needs, wherever they are in the world.

The successful distribution of cross border funds will remain the lifeblood of the fund industry. Fund practitioners will continue to be challenged by its increasing complexity. However, to paraphrase the American poet Wallace Stevens “Everything is complicated; if that were not so, life and everything else would be a bore”.

Josée-Lynda Denis

Chairman of the ALFI TA & Distribution Forum

Updated on 04/11/15  
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