Allfunds Blockchain has partnered with boutique asset manager La Francaise Group (€45bn AUM). Together they aim to reduce the cost of international fund distribution to professional investors. By operating a node on the Allfunds Blockchain network, La Francaise can receive and process orders directly. It expects to go live in the first quarter of 2024.
As a shared ledger, the relevant participants have greater transparency in the distribution process, and it will ultimately reduce costs. Additionally, it should provide more accurate cut-off times and better reporting.
“This partnership marks a first step in La Francaise’s overarching strategy to associate technology and asset management,” said Christophe Descohand, Head of Innovation of La Francaise AM Finance Services. “As such, we will be capable of offering improved operational processing at a reduced cost to our clients.”
La Francaise already has some blockchain experience. It is a participant in IZNES, the UCITS fund marketplace based on blockchain. IZNES initially focused on France and has since expanded into Europe. It has €8 billion in assets on its registry.
Other asset managers to adopt the Allfunds Blockchain solution include Azimut and Alliance Bernstein. In the Azimut case, BNP Paribas Securities Services is the service provider and it integrated Allfunds Blockchain with its legacy systems.
Blockchain continues to attract attention in the asset management space. Schroders is collaborating with another fund distribution platform Calastone, to explore using public blockchain for distribution. And the Deutsche Borse Group recently acquired fund distribution platform Luxembourg-based FundsDLT.
