HSBC rolls out new fund administration infrastructure for Asian clients

19 August 2011   Category: News, Asia, Hong Kong  

HSBC Securities Services (HSS) has implemented its new fund administration infrastructure and operating model in Asia to help clients meet rising demands for transparency in the face of increasing market volatility and regulatory scrutiny.

The new model incorporates seamless integration of best-in-class systems selected after a rigorous review of various vendor solutions. With the system’s versatile reporting and multi-jurisdictional, multi-asset class functionality, the new platform allows HSS to extend its capabilities to pension funds and sovereign wealth funds.

Drew Douglas, co-head of HSBC Securities Services said: “With asset managers facing a shifting regulatory environment and with heightened demand for transparency and risk management, HSS has implemented a new platform that can act as an enabler to our client’s core businesses. Fund managers are under pressure to grow and our clients want to be assured that we can continue to meet their requirements through this global expansion, while at the same time maintaining consistent service levels and an efficient global operating model. This strategic investment underpins our strong commitment to our clients, fund services and the region.”

HSS is one of the world’s leading providers of custody and administration, operating in 48 markets worldwide. One of the business’ strengths is its on-the-ground presence and track record across Asia. Ongoing investment in the technology and operating model to benefit clients ensures that HSS maintains its market leading position.

Lilian Wong, head of fund services, Asia-Pacific, HSBC Securities Services, commented: “This new platform will strengthen relationships with our clients regionally, helping them to realise their ambitions for growth. The versatility that it brings is key to supporting their markets and products in a timely manner. The additional functionality of the new system will allow us to serve new client segments beyond traditional fund management companies.”

At the heart of the new component based model is the market leading fund accounting platform Multifonds, which provides the multi-jurisdiction, multi-asset class functionality of HSBC’s new service. Oded Weiss, CEO of Multifonds, said: “HSS has ambitions as to how they want to utilise our advanced technology platform. Linking with Multifonds is a strong match that offers HSBC the complexity and scalability they require for their clients and the capabilities of our product.”

In addition the new model brings together best-in-class solutions such as Cadis for trade processing, Mig-21 for compliance monitoring, Actuate for report writing with a data warehouse, Transaction Lifecycle Management (TLM) for reconciliation and AWD for workflow management.

To enable greater standardisation of processes with a consistent look and feel for regional clients, alongside appropriate customisation to manage local market requirements, HSS is also deploying a new three-tier operating model in Asia. This involves global processing hubs, regional hub (Hong Kong) and the local sites, taking into consideration the demands of various activities involved in the service.

The new model is being deployed across Hong Kong, Singapore, Malaysia, India, Indonesia, Thailand, Vietnam and Philippines in the first phase.

The client migration to the new platform was kicked off in mid-2011 with the project aiming to move 4,600 regional funds onto the new platform. HSS has over 10,500 funds under administration globally with an asset value of over US$2.6 trillion (June 30, 2011).