Ignites

Story Spotlight: State Street Systems Ready for ETF Shares, Automation or Not “This story takes a look at how State Street is preparing to service dual share class funds before operational issues have been worked out industrywide. The ability to offer an ETF share class within a mutual fund is something asset managers have spent years lobbying for, but issues in areas like post-trade settlement — a process that’s largely automated for mutual funds — remain unsolved. One State Street executive said the firm is prepared to handle such issues manually until operational issues with dual share class funds are solved.” – Sean Teehan Read the full article: https://lnkd.in/eHUf2bqD

In Conversation with Sean Teehan ➡️ What topics do you expect to be covering more within the next year? Fund tokenization — it’s a hot topic, but its use cases haven’t been fully fleshed out. Instant settlement, which is possible with tokenization, would certainly be a new capability, but it’s not yet clear how much demand there is for it. There’s also talk about how blockchain technology can automate some back-office functions, like transfer agency. That raises the question of whether we’ll see headcount reductions in the back-office if tokenized funds start gaining momentum. ➡️ What draws you to the technology and operations beat? The technology and operations beat is infinitely fascinating, because tech and ops is how the fund industry actually works. While the front-office figures out the strategies, the middle- and back-office settle trades, custody assets and do the less glamorous work that turns financial concepts into reality. ➡️ What common challenges do firms face when integrating AI into their processes? Some firms may not ask enough questions about AI products before trying to deploy them. AI tools can be great, but without proper data governance, the tools won’t work correctly. For example, if there are multiple conflicting figures for the same data point, AI systems struggle because they rely on standardized, consistent datasets. Many firms now have to clean up their data infrastructure to ensure consistency and accuracy before they can successfully deploy AI tools.

AllianceBernstein, Brookfield and The Carlyle Group are partnering up on a "turnkey private-markets solution" for defined contribution retirement plans, the firms announced Wednesday. Read more: https://lnkd.in/exZhHhPy

Behind Ignites: Meet Senior Reporter Sean Teehan Sean is a senior reporter covering the technology and operations beat. He joined FT Specialist in 2024 and is based in New York. He previously served at outlets including Advance Media, The Hartford Business Journal, New England Public Media, The Phnom Penh Post and The Boston Globe. He graduated with a BS in Journalism from Emerson College.

Join industry experts next week for a webcast, sponsored by SS&C Technologies, to explore ETF structures, share class strategies, entry pathways and the operational foundations firms need to successfully bring products to market and compete in today’s evolving ETF landscape. Register now: https://lnkd.in/euKbVTET

This week's top stories: BNY recruits Nicole Greene from SS&C, AI's predicted impacts on the fund industry, Ken Leech's legal team debates juror instructions and more.

For the second year in a row, BlackRock CEO Larry Fink was the top-paid asset management executive, according to an analysis of regulatory filings. Clicks for insights from Madison Hall. https://lnkd.in/edB2zUZU

Janus Henderson awarded the bonus a year ago, but ISS and Glass Lewis have flagged it as a reason to recommend voting against top executives' pay packages. The company is slated to go private by midyear, calling into question what will happen with the bonus. Read more: https://lnkd.in/e2qpdJ-2

While John Hancock's "AI-powered sales platform" reportedly improved interactions with advisors, the asset management unit posted net outflows for the quarter. https://lnkd.in/egN9TEgj

Entries are open for the Asset Management STAR Awards - North America. Showcase the strategies, campaigns, and innovations making an impact across the asset management industry. From thought leadership and investor engagement to sales excellence and firm-wide achievement. Access the event brochure for full details on categories, entry criteria, key deadlines, and more. Download here: https://lnkd.in/eUwBZeVX #AMSANorthAMerica