1. ISO 20022 for Funds
The migration path
Koen Vierendeels
Programme manager MX migration Funds
02/07/2009

2. Investment funds & SWIFT
A bit of history
• In 2001, the fund industry asked SWIFT for a solution to increase
automation within the Fund industry
• SWIFT applied a two-phase approach:
– Delivery of a tactical solution (ISO 15022 fund templates) to cover the most
urgent needs in 2001
– Delivery of a strategic solution (ISO 20022 fund messages) to fully comply
with the industry’s requirements in 2004
• Both solutions are actively used and are a huge success: in 2008,
over 25 million messages were sent
Traffic evolution ISO 15022 Traffic evolution ISO 20022
7,000,000 450,000
6,000,000 400,000
350,000
5,000,000
300,000
4,000,000 250,000
3,000,000 200,000
150,000
2,000,000
100,000
1,000,000
50,000
0 0
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008
MT MX Funds migration_02072009_v03 2

3. Investment funds & SWIFT
Changing service offer in a changing world (1/2)
• Automation of order processing still remains a key challenge, but
focus is widening:
– Product wise: automation needs to cover all types of funds
(mutual funds, hedge funds, pension funds, money market
funds)
– Process wise: Increase STP levels for pre- and post
transaction processes:
– Collection and distribution of (operational) fund information
– Account opening
– Position management (statement, pricing, transfer)
– Cash forecasting
• Drivers:
– Reduce costs and risks
– Increase transparency (KIinz report)
MT MX Funds migration_02072009_v03 3

4. Investment funds & SWIFT
Changing service offer in a changing world (2/2)
ISO 15022 (MT) ISO 20022 (MX)
Lifecycle Orders Orders, Transfers, Statements,
Account management, Price
reports, Cash Forecasts, Fund
Processing Passport
Products Mutual funds Mutual funds, hedge funds,
pension funds
Geographical Europe Worldwide
Cross border Cross border & domestic
MT MX Funds migration_02072009_v03 4

5. MT-MX Funds migration
Approach & planning (1/3)
• The migration will be done in 2 waves:
– Wave 1: migration of cross-border TAs & large hubs
– Wave 2: migration of other users
• Rationale:
– Business dynamic: cross-border and TAs/IMIs first, then
distributors follow
– Approach allows to focus on a limited number of players for
Wave 1 , offering opportunities for a handheld approach.
• Timing: full implementation of the ISO 20022 fund messages
throughout the industry by end 2012
MT MX Funds migration_02072009_v03 5

6. MT-MX Funds migration
Approach & planning (2/3)*
• Community to migrate:
Category Institutions BICs MT Usage Comments
Very High > 19 187 75.80 % Limited number of institutions and limited
2000/d. number of high volume BICs
High > 46 174 20.87 %
200/d.
Medium > 40 63 2.48 %
50/d.
Low > 73 110 0.78 % 19 messages/day in average – 27
5/d. institutions only receiving MT 515
Very Low < 158 171 0.07 % 1 message/day in average – 136
5/d. institutions only receiving MT 515
Total 336 705 100.0%
MT MX Funds migration_02072009_v03 *Q1 2009 figures 6

7. MT-MX Funds migration
Approach & planning (3/3)
End 2010 End 2011 End 2012
End 2008
End 2009
Board decision
on end date MILESTONE 3:
• All players have
MILESTONE 1 implemented ISO 20022
• All top 20 players are ISO 20022 enabled for Funds
• All Luxembourg and Irish Transfer Agents
are ISO 20022 enabled
MILESTONE 4:
MILESTONE 2: DECOMMISSIONING OF
• All top 20 players only use ISO 20022 between themselves related MT Fund
• All hubs are ISO 20022 enabled Templates*
• All order senders are ISO 20022 enabled
• All Luxembourg and Irish players are ISO 20022 enabled
MT MX Funds migration_02072009_v03 7

8. Status MT-MX migration programme
Users and volumes SWIFT fund solutions
MT fund templates traffic MX fund traffic
3,000,000 200,000
180,000
2,500,000 160,000
140,000
2,000,000
120,000
1,500,000 100,000
80,000
1,000,000
60,000
500,000 40,000
20,000
0 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2008 2009 2008 2009
April 2008 April 2009 April 2008 April 2009
94.65% of volume 90.96% of volume 5.35% of volume 9.04% of volume
652 BICs 662 BICs 38 BICs (live) 53 BICs (live)
MT MX Funds migration_02072009_v03 8

9. EFAMA study on funds processing
standardization
EFAMA = European Fund and Asset Management Association
Introduction to funds distribution

10. Do you need support in implementing the
Funds MX solution?
1-800-825-2518 funds@swift.com
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