Funds managers performing transactions through managed fund hub provider Ausmaq have typically beaten internally-set target times for settlement, however delays of several weeks are still common according to Ausmaq research.
The Ausmaq Fund.metrix series (metrix) assesses the real-life settlement processing performance of hub users against the targets promised in their disclosure statements. The metrix for calendar 2006 covered a universe of 650 funds, recording the time taken by managers to process applications (buys) and redemptions (sells) across eleven asset classes. “It’s a complete sample, off the back of our own trading with real orders fulfilled,” Ausmaq chief executive, Robert Brown, said. “We only looked at daily priced funds.” Across the asset classes, managers completed applications within an average of 2.2 business days. The minimum time required was one day and the recorded maximum, for an Australian equities application, was 31 days (Brown can’t name the culprit). Managers completed redemptions in all asset classes within an average of 2.9 business days, with the minimum time required being two days and the maximum 46 days, again for an Australian equities transaction. “The data points to quite a reasonable job being done [by managers] most of the time,” Brown said. “There are sometimes some quite lengthy delays, which indicates they could get better at these processes. “Occasionally a manager will delay because of a range of processing issues at their end: whether they have to actually sell [securities], or whether the time period straddles a holiday period, or some of the equities funds may not have particularly liquid holdings.” The asset classes that feature in the metrix are: Australian equities, Australian fixed interest, cash, direct property, diversified balance, diversified capital stable, diversified growth, international equities, international fixed interest, mortagages and property securities.
Asset owners that have set emission reduction targets face the onerous task of collecting and aggregating emissions data for every asset they own, and the challenge has been particularly complex for unlisted assets. Aware Super head of responsible investment Liza McDonald says working with the provider of the infrastructure that connects asset owners to asset managers and underlying assets has been “a brilliant step”.
Simon HoyleMay 12, 2025
