January 2015 - From the CEO

From the CEO

2014 saw the fund industry begin to embrace new technology and Fundsquare was at the forefront

2014 was a landmark year for the European fund industry.

Based on the latest statistics, net inflows for UCITS are on track to be positive for all twelve months of the year and total inflows are approaching, and may even surpass, those of the all-time record year of 2005.

Net assets of both UCITS and non-UCITS passed the 10 trillion euro mark in the second quarter and 11 trillion in the third quarter.

Concentrating on practical implementation

There was some hope in 2014 that the fund industry had reached “peak regulation” and that all actors could concentrate on the practical implementation of the various laws and directives.

This hope may be slightly premature but the year was certainly marked by concrete actions that will enable all fund industry to comply efficiently with the new requirements.

Removing inefficiencies is at the heart of the Fundsquare mission. Indeed, this was a primary reason for creating Fundsquare in 2013: to push the industry forward and to deliver a flexible and responsive infrastructure for operational effectiveness across the entire distribution chain.

Practical implementation means technology

I think it is fair to say that, for many years, funds were lagging behind in their ability to leverage opportunities that were presented by technology, particularly when compared to other financial instruments such as shares of companies, which have been traded via advanced infrastructures for some time.

However, 2014 saw the industry begin to take steps to remedy this situation.

A minor but significant step in this direction was the increasing use by asset managers of social media. People in institutions already know the effectiveness of new communication methods in their private lives and now increasingly demand the same for their business.

Big data and data analytics are also moving to centre stage and this may present some difficulties for asset managers. Some are considering partnering with high-tech specialists or are improving their operational capabilities.

Fundsquare is at the forefront of this trend for advanced solutions through technology and rolled out, or laid the foundations for, interesting initiatives in this respect during the year. Some of these are mentioned in this newsletter.

For 2015, we will continue to focus on innovative solutions for order management, information and regulatory compliance to enable the fund industry to meet current and future challenges of cross-border distribution.

Dominique Valschaerts
CEO, Fundsquare

_{Published on: 30 January 2015}

Fundsquare News 16 - January 2015