Fund Custody

Safekeeping, trade instruction and matching, corporate actions and reconciliations

We’ll find a way to do it better.

A better way to do it

For MMC Fund Administration clients, we extended our service offering to include the role of custodian in 2018 for Managed Investment Scheme licensed funds and our clients’ wholesale funds. These custodial services are in addition to our ability to integrate with a number of leading custodians in the market, of behalf of our clients, when providing fund administration services.

Being restless to improve, the adding of this service aligns with our promise to our clients that we’ll find a way to do it better.

Our service offering includes:

 

Safekeeping

Our team in New Zealand manage the custodial service for New Zealand investments. Our sub-custodian (NAB) act on instruction from ourselves for the Australian and global investments. Custody assets are held in the name of our nominee company Queen Street Nominees Limited.

MMC are responsible for the maintenance of the custody asset register – ensuring that all securities are delivered, payments of cash made, income collected, fees paid, taxes paid / reclaimed and corporate actions and proxies acted upon as per the instruction of the client.

 

Trade instruction

Trades are processed through NZClear wherever possible. Australian and global trades are instructed to the sub-custodian, once matched, utilising automated processing via OMGEO.

Settlements instructions are uploaded from our system to the banking system.

 

Trade matching

Settlements instructions are uploaded from our system to the banking system.

MMC provide trade matching services. This includes communicating with our clients and the sub-custodian to ensure the timely resolution of any issues. The majority of trades are matched in OMGEO (including global equities), others directly with counterparties. Managed fund trades are via Calastone where possible.

 

Corporate actions and proxy voting

MMC refer to data provided by the sub-custodian, Bloomberg, NZClear and stock exchange diaries, with further reference to company websites and clients.

MMC work with clients and the sub-custodian to register proxy votes in a timely manner. MMC submit proxy vote instructions via the ISS Proxy Exchange.

 

Reconciliations

Custody assets are recorded in our system and reconciled daily where possible, against: NZClear; counterparties where appropriate; share registries; unit registries; sub-custodian’s record; and managed fund statements where appropriate.

Bank accounts for the funds and the nominee clearing account are also reconciled daily.

For more information about our Fund Custody services, please contact us at info@mmcnz.co.nz or call us on 09 309 8926