State Street has extended its relationship with AXA Investment Managers (AXA IM) to provide end-to-end production and servicing for the Key Investor Information Document (KIID), a mandatory requirement of the new UCITS IV directive. Under UCITS IV, asset managers will be obliged to replace their current simplified prospectus or factsheet with a KIID for each individual UCITS product sold within the European Union.
Drawing on its expertise in servicing UCITS funds, State Street is working closely with regulators and clients to provide solutions that help clients optimise their operations in the wake of UCITS IV and continuing regulatory changes. State Street offers Europe-wide coverage and end-to-end solutions that span the investment value chain, including core custody and fund administration services, performance analytics, transfer agency and tax reporting at investor level.
State Street’s KIID solution incorporates data provision, including calculation and monitoring of Ongoing Charges and Synthetic Risk and Return Indicator (SRRI) as well as provision of Past Performance, document collation/management and translation.
AXA IM is the first client to work with State Street using the KIID solution. “We have extended our relationship with State Street as we felt they were best suited at this point in time to provide us with an end-to-end KIID solution, one of the mandatory UCITS IV components,” said Christophe Coquema, global head of Markets and Investment Strategy at AXA Investment Managers. “As the regulatory landscape evolves, choosing an investment servicing provider who can best meet our needs now and for the immediate future is important.”
“We are delighted to be able to further extend our relationship with AXA IM,” said Tim Caverly, executive vice president and head of sales and business development for State Street’s Global Services business in Europe. “State Street has the infrastructure and solutions to support our clients as they optimise their operations anticipating the requirements of UCITS IV, and we have a presence in all major European service centres and key distribution locations for UCITS funds globally. Our network gives us deep, local expertise and ensures we remain connected to local and regional regulators.”
State Street was originally appointed by AXA Investment Managers in December 2004, to provide fund accounting and administration services across the UK, France and Germany. The relationship has since extended to include Luxembourg, Ireland and Switzerland and the AXA Rosenberg APAC fixed and balanced funds.
State Street’s comprehensive UCITS reporting capabilities include exposure and concentration limit reporting, Value-at-Risk (VaR) analysis, back testing and stress testing. These reports are configured and generated by risk specialists and backed by documented methodology. Clients receive a full set of pre-defined reports detailing the risk profiles of their funds for each of the UCITS-required reporting elements. For clients who also require compliance testing to support their UCITS portfolios, State Street can provide an additional reporting suite that incorporates testing of asset mix, concentration risk, quality ratings and leverage restrictions. Additional interactive risk services are available and include customizable reporting and position-based risk analysis.
