Simplicity and Standardization: New Kneip and NFN Partnership Streamlines European Funds
A state pension used to be the primary source of retirement income for most Europeans, but those days are over. Younger generations are thinking more about accumulating wealth independently, and many welcome the opportunity to choose investments that align with their personal values. They want to be better educated and informed about their investment alternatives, and they want easy access to investment fund data on web portals and through mobile devices. At the same time, asset managers are keen to promote their funds to distributors, financial advisors, and investors.
There are several investment fund distribution portals in Europe. But to search for an asset, investors must know the name of the fund, the country, and the identification code. Currently, there are multiple identification codes in Europe, including ISINs, WKNs and SEDOLs. This disjointed process impedes transparency and leads to some confusion. Sometimes investors know the name of the asset, but they don’t know the specific country or share class. A fund could be available in multiple countries denominated in different currencies and with expense ratios and minimums.
In contrast, Nasdaq Fund Network (NFN) in the U.S. facilitates the collection and dissemination of fund data, allowing investors to find relevant, accurate and reliable pricing data on funds. Asset managers register their products on the network and receive a unique NFN identifier, similar to a ticker on a listings exchange. NFN then disseminates the data, making it searchable on one of the largest distribution networks, which pipes into online brokerages and major market data vendors.
“Asset managers and investors in the U.S. can go to a website such as Yahoo! Finance, type in a mutual fund symbol, and get the net asset value (NAV) for the last 20 years,” says Garrick Stavrovich, Vice President of Nasdaq Fund Network. “They can do a Google search and easily find a prospectus. That’s not the case in Europe.”
But the European landscape is about to change.
KNEIP, a leader in fund data management and reporting solutions for the asset management industry, has forged a partnership with Nasdaq to register investment funds in Europe on NFN. This will provide enhanced transparency and accessibility of investment products in Europe with a standardized five-character symbol.
“An NFN identifier is much easier to remember and search than a 12-digit ISIN,” Mario Mantrisi, Strategy Director at KNEIP, points out. “Going forward, the European fund symbols will be published on several distribution channels including NFN and eVestment, a part of Nasdaq which provides institutional investment data, analytics and market intelligence covering public and private markets. Current and historic NAVs, dividend information, performance data and prospectuses will be more widely available and accessible.”
KNEIP covers 40% of European UCITs and has 170 data distribution channels in Europe and elsewhere. It proactively manages clients’ data by providing accurate and consistent checks between vendors and platforms. Together with NFN, KNEIP will continue to provide accurate client data to the industry while leveraging the distribution channels of NFN and improving the discoverability and ease of use with the NFN symbol.
Around 700 asset managers are on NFN in the U.S., and many of them operate in Europe as well. Nasdaq’s partnership with KNEIP will streamline the onboarding process for asset managers with funds in Europe. They can join the network, and Kneip and Nasdaq will register those funds as a service, and the information will be distributed to most global portals.
Additionally, the data that Nasdaq collects through the partnership will resonate through all the Nasdaq analytics platforms. These include Nasdaq Data Link, a marketplace for financial, economic, and alternative data available via easy-to-use APIs, as well as through the Nasdaq eVestment institutional intelligence products and over 400 redistributor partners.
Ultimately, the partnership is a win across the board for European Fund stakeholders. Investors and financial advisors will have easier access to accurate fund data and product information, which will help inform their decisions. Asset managers will be able to differentiate themselves once their products are more discoverable. In addition, Nasdaq and KNEIP can grow their businesses and potentially leverage their extensive relationships with asset managers to develop new products for the European market.
Contact info@kneip.com to find out more about the customizable five-character symbol or to register your funds on Nasdaq Fund Network.
Contact NasdaqFundNetwork@Nasdaq.com to learn more about the network.
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