35A, Boulevard Joseph II, L-1840 Luxembourg, Luxembourg
Helping intermediaries to streamline fund distribution processes
Today, the fund distribution process is very fragmented, with a diversity of actors who do not cooperate effectively and who duplicate the same data and operations. Furthermore, the information and data at any point of the distribution chain is not necessarily communicated to the others. Such an operating model generates avoidable costs and is not efficient.
In response to this, FundsDLT has created a decentralized blockchain-based infrastructure allowing all actors to interoperate with asset managers directly. By leveraging the same infrastructure, information can be more effectively shared from one end to the other.
The mission of the company is to make the buying and selling of fund shares easier, cheaper and faster. Wealth managers can thus take advantage of value-added service channels and offer enriched investor experience.
The infrastructure, built on a private blockchain, is available to all, including distributors, depositary banks, transfer agents and wealth and asset managers. Working via a single infrastructure permits them to share, process and reconcile information. All actors can carry out their operations and assume their responsibilities from the same source of information. We remove all redundant activities thus saving time, creating efficiency and significantly reducing costs.
The FundsDLT project began in 2016 and in 2020 was backed by four major financial services companies: Clearstream, Credit Suisse Asset Management, the Luxembourg Stock Exchange and Natixis Investment Managers.
Client Marketing & Prospecting, Digital Platforms & Tools, Distributed Ledger Technologies & Cryptocurrencies, Market & Business Infrastructure
FundsDLT has been focused on building and running a completely re-engineered infrastructure for the investment fund industry, and in particular for funds distribution, since 2016.
Built for and with the market
At that time, three companies in Luxembourg, Europe’s large fund centre, came together to explore ways that distributed ledger technology could improve and enhance the workings of the fund distribution chain, as well as to reduce costs.
This group was composed of an advisory expert (KPMG Luxembourg), an IT company (InTech) and a fund market infrastructure (Fundsquare). It was joined by a large user group of fund companies that advised on the prototypes.
The mission of FundsDLT is to:
What we offer
FundsDLT aims to fulfil this mission by:
Core services offered by the company are account management, order management, cash settlement automation and reconciliation, API interoperability and real time reporting and analytics.
It also works with partners to offer specific services related to KYC for investor onboarding and fund data.
In 2020, it was boosted by significant investment from four important companies: Clearstream, Credit Suisse Asset Management, the Luxembourg Stock Exchange and Natixis Investment Managers.
The team today comprises experts with a long experience in a number of key areas. These include the creation and maintenance of financial services infrastructure, IT services in the financial sector and investment fund distribution.
FundsDLT offers products and services for both the buy side and the sell side, covering the funds' entire life cycle and with a strong focus on asset managers and their relationships with intermediaries and, most importantly, end investors.
Asset managers use FundsDLT to provide more value to their clients through data usage and digitization. In the same way, asset servicers looking for cost reduction and the ability to create new added value products (via, for example, data analytics, digitalization or robo advisors) will find the DLT infrastructure particularly useful.
Working together with asset managers, distributors and platforms seeking to reduce costs and digitalize investment process are also targeted. Finally, retail investors will benefit from a better user experience, as well as from cheaper and more adequate products.
FundsDLT Platform Solution for wealth managers FundsDLT provides a shared platform built on distributed ledger technology. It aims to generate efficiencies, transparency and better client experience all along the investment fund distribution chain. Wealth managers can streamline a range of tasks by using the FundsDLT blockchain to automate processes in a......