Deutsche Börse’s Clearstream will be UK broker AJ Bell’s primary custodian for funds custody, settlement and order routing for its Youinvest, Investcentre and Custody Solutions products in respect of open-ended investment companies (OEICs), unit trusts and hedge funds via its fully automated global fund processing platform Vestima, Deutsche Börse announced today.
Investment funds have become an increasingly popular investment option. As of May 2020, Clearstream held €2.5 trillion in investment funds under custody on behalf of its clients (2015: €1.8 trillion; 39 per cent increase within five years).
As an international central securities depository (ICSD), headquartered in Luxembourg, Clearstream provides the post-trade infrastructure for the Eurobond market and services for securities from 58 domestic markets worldwide.
Clearstream said that AJ Bell will benefit from the ability to process its post-trading activities for funds alongside existing, more traditional products, such as equities, corporate and government bonds, with both a domestic and global reach.
Supporting stability and effciency
“After thorough consideration, we have selected Clearstream as our primary custodian to manage our funds custody and dealing. This builds on our existing relationship in respect of equity and debt products that has developed over the last couple of years. This step will simplify our operation, helping us to better serve the advisers and customers that use our platform propositions,” Michael Summersgill, CFO at AJ Bell, said.
“We are thrilled that AJ Bell has put their trust in our services. With our DvP settlement with a best-in-class straight-through processing rate of 98 per cent, we look forward to supporting stability and efficiency for our customers and the UK funds industry in general. We are extremely proud to be working with AJ Bell and look forward to doing so for many years to come,” Philippe Seyll, head of investment fund services at Clearstream, added.
Established in 1995, AJ Bell is one of the largest investment platforms in the UK.
The firm operates in both the advised and direct to consumer segments of the platform market and their flagship platform propositions are AJ Bell Investcentre (adviser) and AJ Bell Youinvest (direct-to-consumer).