Just Released - Calastone Integration

For fund managers distributing through adviser channels, operational efficiency depends on how seamlessly orders flow from wrap platforms into the registry. Caruso now integrates with Calastone, the largest global funds network, enabling fund managers to automate order processing from adviser wrap platforms like Netwealth, Macquarie Wrap, HUB24 and Powerwrap directly into their registry workflows.

Connecting to Australia's Adviser Distribution Network

Wrap platforms have become the primary tool through which financial advisers manage client portfolios. These platforms allow advisers to build and administer investment and superannuation portfolios across a broad range of managed funds, listed securities and cash facilities. For fund managers seeking to grow assets under management through the adviser channel, being accessible on these platforms is essential.

Calastone sits at the centre of this ecosystem, providing the order routing infrastructure that connects wrap platforms to fund managers and transfer agents. The network processes approximately A$23 billion in monthly transaction value across the Australian market alone, with connectivity to over 4,500 clients globally.

Caruso's integration with Calastone means fund managers can now receive adviser-directed orders automatically, without the manual processing that has traditionally slowed transaction cycles and introduced operational risk.

Automated Order Processing

The integration supports the full range of order types that advisers submit through wrap platforms.

Subscriptions: When an adviser places a subscription order through their wrap platform, Caruso receives the order via Calastone and automatically creates an allocation request. Fund managers can review, approve or reject the order, with status updates flowing back through the network to keep advisers informed at each stage of the process.

Redemptions: Redemption requests follow the same automated pathway. Orders arrive in Caruso, where they can be reviewed and confirmed. Upon approval, the registry is updated and confirmation messages are sent back through Calastone to the originating platform.

Switches: For investors moving between unit classes or funds, switch orders are processed as coordinated redemption and subscription transactions, maintaining accurate registry records throughout.

Throughout the order lifecycle, Caruso and Calastone exchange status messages that keep all parties informed. Advisers receive confirmation when orders are accepted, when prices are struck, and when transactions are settled.

Reducing Operational Risk

Prior to automated order routing, fund managers receiving orders from wrap platforms faced a fragmented process. Orders might arrive via fax, email or proprietary platform portals, each requiring manual entry into registry systems. This created multiple points where errors could occur: missed orders, incorrect data entry, delayed processing, and inconsistent record-keeping.

The risks of manual processing are well documented. Orders can be incomplete, references can be transcribed incorrectly, and critical requests can be delayed or overlooked entirely. For finance teams managing high transaction volumes, particularly in open-ended funds with daily dealing, these inefficiencies compound quickly.

By automating the flow of orders from wrap platforms into Caruso, fund managers eliminate the need for manual data entry and gain real-time visibility into order status. The integration also creates a complete audit trail, with every order and status update recorded systematically.

Practical Benefits for Fund Managers

For teams managing adviser-distributed funds, the Calastone integration delivers several operational improvements.

Faster transaction processing: Orders that previously required manual handling now flow automatically into Caruso workflows, reducing processing time from days to hours.

Improved accuracy: Eliminating manual data entry removes a significant source of processing errors, ensuring registry records remain accurate and complete.

Greater visibility: Fund managers can track orders through each stage of the lifecycle, from receipt through to settlement, with status updates available in real time.

Reduced administrative burden: Finance and operations teams can redirect time previously spent on order entry toward higher-value activities.

Scalable operations: As transaction volumes grow, the automated integration handles increased order flow without requiring proportional increases in manual processing capacity.

Strengthening Adviser Relationships

Beyond operational efficiency, the integration supports better relationships with the adviser community. Advisers expect responsive service and timely transaction processing. When orders are confirmed quickly and accurately, it reflects well on the fund manager and reinforces confidence in the operational capability behind the investment product.

The ability to participate fully in the Calastone network also expands distribution reach. Fund managers connected to Calastone can more easily be added to wrap platform menus, making their funds accessible to a broader adviser base.

A Foundation for Growth

The Calastone integration represents a significant step in Caruso's commitment to connecting fund managers with the broader financial services ecosystem. As wrap platforms continue to grow in importance, the ability to process orders efficiently from these channels becomes increasingly valuable.

If you would like to explore the Calastone integration or discuss how it can support your distribution strategy, email [email protected] to arrange a product demonstration.