ATP, Denmark's largest pension fund administrator, is to use Euroclear's Web-based cross border platform FundSettle to process all non-Danish fund transactions as part if its new savings scheme, Folkeboersen.
The Folkeboersen (People's Exchange) scheme goes live in January 2005 and will allows Danish employees to personally choose where their capital should be invested using a Web portal.
Subscription and redemption instructions for international funds received via the portal will be pooled by ATP and sent directly to FundSettle. Cash settlement and custody services will be provided by ATP's custodian bank, Nordea Bank Copenhagen.
Bjarne Graven Larsen, chief investment officer, ATP, says: "By providing a high-quality and efficient service at minimum cost, FundSettle represents a close fit with ATP's own core values.
"Keeping a tight rein on administration costs is the key both to maximising consumer choice in the selection of investment managers and to creating an international marketplace in Denmark for collective investment schemes."
Euroclear says ATP's use of Fundsettle will demonstrate how the platform can be used by custodian banks, which have tended to steer clear of the investment-fund sector due to high levels of manual intervention and attendant costs.